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An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?
- a)Rs. 6,000
- b)Rs. 15,300
- c)Rs. 3,300
- d)Rs. 18,000
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
An item of furniture was destroyed by fire whose cost was Rs. 18,000 a...
Calculation of Loss by Fire:
Cost of furniture = Rs. 18,000
Less: Depreciation provision = Rs. 2,700
Net book value of furniture = Rs. 15,300
Amount claimed from insurance company = Rs. 12,000
Loss by fire = Net book value of furniture - Amount claimed from insurance company
= Rs. 15,300 - Rs. 12,000
= Rs. 3,300
Therefore, the amount to be recorded in the account as loss by fire is Rs. 3,300.
Cost of furniture = Rs. 18,000
Less: Depreciation provision = Rs. 2,700
Net book value of furniture = Rs. 15,300
Amount claimed from insurance company = Rs. 12,000
Loss by fire = Net book value of furniture - Amount claimed from insurance company
= Rs. 15,300 - Rs. 12,000
= Rs. 3,300
Therefore, the amount to be recorded in the account as loss by fire is Rs. 3,300.
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Community Answer
An item of furniture was destroyed by fire whose cost was Rs. 18,000 a...
Cost of furniture= 18000
depreciation on furniture till the date i.e. 2700
==>cost of furniture at the time of incident was = 1800-2700 = 15300
Now claim received on furniture is 12000 which is less than the cost of furniture at the time of incident.
==> 15300-12000 = 3300 loss
Option c is correct 3300 is loss on furniture.
depreciation on furniture till the date i.e. 2700
==>cost of furniture at the time of incident was = 1800-2700 = 15300
Now claim received on furniture is 12000 which is less than the cost of furniture at the time of incident.
==> 15300-12000 = 3300 loss
Option c is correct 3300 is loss on furniture.
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An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?a)Rs. 6,000b)Rs. 15,300c)Rs. 3,300d)Rs. 18,000Correct answer is option 'C'. Can you explain this answer?
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An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?a)Rs. 6,000b)Rs. 15,300c)Rs. 3,300d)Rs. 18,000Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?a)Rs. 6,000b)Rs. 15,300c)Rs. 3,300d)Rs. 18,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?a)Rs. 6,000b)Rs. 15,300c)Rs. 3,300d)Rs. 18,000Correct answer is option 'C'. Can you explain this answer?.
An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?a)Rs. 6,000b)Rs. 15,300c)Rs. 3,300d)Rs. 18,000Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?a)Rs. 6,000b)Rs. 15,300c)Rs. 3,300d)Rs. 18,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An item of furniture was destroyed by fire whose cost was Rs. 18,000 against which a claim of Rs. 12,000 was accepted by the insurance company. The depreciation provision up to date of fire was Rs. 2,700. What amount to be recorded in account as loss by fire?a)Rs. 6,000b)Rs. 15,300c)Rs. 3,300d)Rs. 18,000Correct answer is option 'C'. Can you explain this answer?.
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