Archive about 'Insurance Claims'

Explain the reasons or purposes of computing the value of goods lost in a fire or by theft and how should we compute the value of goods lost if there are incomplete records

Tweet When goods have been lost in a fire or by a theft the value of such loss must be calculated for: (a)    The loss to be reflected in the trading account at the year end as a reduction of the cost of sales (b)   A claim for compensation to be prepared for insurance compensation […]

Insurance Claim:Loss On Stocks Claims

Tweet How to compute Loss On Stock Claims 1.       Draw up an estimated Trading Account for the period2.      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 […]

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

Tweet 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 […]

Accounting Test Question SWO No. 1 On Stock Loss

Tweet 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 […]

Accounting For Stock Loss

Tweet Stock Loss is simply the discrepancy/difference between actual physical stock value compared to book value of stock. Also see article on adjustments or reconciliation of discrepancies of physical stock take versus book figures. Stock loss is normally incurred when stock is lost in a fire or stolen/pilferage. Accounting Treatment of Stock Loss: Computation of […]