Archive about 'Insurance Claims'

Insurance Claim:Loss On Stocks Claims

How to compute Loss On Stock Claims

1.       Draw up an estimated Trading Account for the period

2.      The average gross profit % on turnover for the past years will be ascertained and this rate is use to calculate the estimated gross profit on the sales for the period under review.
3.      The balance on the Trading Account will [...]

Answer To Accounting Test Question SWO No. 1 On Stock Loss

Answer to Accounting Test Question SWO No.1:

Answer to Question A:
(A ii) Computation of Adjusted Value of Wintner’s stock at 31 March 2006

 

$

$

Balance of stock

 

64,670

Add: goods purchased

2,830

 

Goods returns (100/125 x $180)

144

2,974

 

 

67,644

Less: Credit sales (100/125 x $2,120)

1,696

 

Cash sales (100/125 x$1,320)

1,056

 

Goods returned to supplier

450

3,202

Adjusted stock value

64,442

 

 

 

Answer A (ii)

Adjusted stock value

64,442

Less: reduce in stock value ($3,000-$2,500)

500

Revised stock value

63,942

From the [...]

Accounting Test Question SWO No. 1 On Stock Loss

Accounting Test Question SWO No 1:

Question A:
Wintner Stores, whose financial year ends on 31 March, took stock on 26 March 2006. The stock on that date was valued at cost $64,670. Wintner added 25% to cost to obtain the selling price in the year ended 31 March 2006
Between 26 March and 31 March 2006, the [...]

Accounting For Stock Loss

Stock Loss is simply the discrepancy/difference between actual physical stock value compared to book value of stock.
Stock loss is normally incurred when stock is lost in a fire or stolen/pilferage.

Accounting Treatment of Stock Loss:

Computation of Stock Loss Figure:

Opening stock                       $X
Add: Purchase                       $X
Goods Available for sale         $X
Less: Cost of sales              ($X)
Closing Stock                       $X
Less:Physical [...]