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Insurance claim for loss of profit
Accountancy
Sir, In this illustration we have admin selling and finance expenses of Rs. 200000 .insured standing charges is Rs. 50000 But while calculating uninsured expenses we ignored selling expenses. Why?, please explain.
Answers (5)
Sahibdeep Singh
Selling expenses are normally not considered as standing charges
Sir, while calculating the insurance claim under average clause. Will we compare previous financial year turnover with insurance policy amount or annual turnover with insurance policy amount?
Thread Starter
Balamurugan VSir, while calculating the insurance claim under average clause. Will we compare previous financial year turnover with insurance policy amount or annual turnover with insurance policy amount?
Practically, when insurance is taken previous financial year figures are only available. But it is put into contract itself that gross profit on adjusted annual turnover would be the appropriate figure to compare.
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