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Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300?
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Goods costing Rs.4,000 having normal sales value of Rs.6,000 were dest...
Calculation of Loss by Fire
Cost of Goods = Rs. 4,000
Normal Sales Value = Rs. 6,000
Scrap Value = Rs. 400
Final Claim Accepted by Insurance Company = Rs. 2,700
1. Calculation of Loss by Fire
Loss by Fire = Cost of Goods - (Scrap Value + Final Claim Accepted)
Loss by Fire = Rs. 4,000 - (Rs. 400 + Rs. 2,700)
Loss by Fire = Rs. 900
Therefore, the loss by fire that will be transferred to the P and L A/c is Rs. 900.
Explanation
When goods are destroyed by fire, the company can claim compensation from the insurance company. The insurance company will take into account the cost of the goods, the normal sales value, and the scrap value. In this case, the cost of the goods was Rs. 4,000 and the normal sales value was Rs. 6,000. The scrap value was Rs. 400, which means that the insurance company would have paid Rs. 400 for the scrap after the fire. The insurance company accepted a final claim of Rs. 2,700, which means that they agreed to pay Rs. 2,700 to the company for the loss by fire.
To calculate the loss by fire that will be transferred to the P and L A/c, we subtract the scrap value and the final claim accepted from the cost of the goods. In this case, the loss by fire is Rs. 900, which means that the company will record a loss of Rs. 900 in the P and L A/c.
Cost of Goods = Rs. 4,000
Normal Sales Value = Rs. 6,000
Scrap Value = Rs. 400
Final Claim Accepted by Insurance Company = Rs. 2,700
1. Calculation of Loss by Fire
Loss by Fire = Cost of Goods - (Scrap Value + Final Claim Accepted)
Loss by Fire = Rs. 4,000 - (Rs. 400 + Rs. 2,700)
Loss by Fire = Rs. 900
Therefore, the loss by fire that will be transferred to the P and L A/c is Rs. 900.
Explanation
When goods are destroyed by fire, the company can claim compensation from the insurance company. The insurance company will take into account the cost of the goods, the normal sales value, and the scrap value. In this case, the cost of the goods was Rs. 4,000 and the normal sales value was Rs. 6,000. The scrap value was Rs. 400, which means that the insurance company would have paid Rs. 400 for the scrap after the fire. The insurance company accepted a final claim of Rs. 2,700, which means that they agreed to pay Rs. 2,700 to the company for the loss by fire.
To calculate the loss by fire that will be transferred to the P and L A/c, we subtract the scrap value and the final claim accepted from the cost of the goods. In this case, the loss by fire is Rs. 900, which means that the company will record a loss of Rs. 900 in the P and L A/c.
Community Answer
Goods costing Rs.4,000 having normal sales value of Rs.6,000 were dest...
Its answer is 900….. as the goods destroyed by fire is 4000 and company didn't pay claim of 400 and final claim is 2700 ... i.e.(4000-400)- 2700=900 is the loss faced by the manufacturer.
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Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300?
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Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300? 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 Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300?.
Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300? 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 Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by fire. The Scrap value of Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to P and L A/c? 1,700 1,300 900 3,300?.
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