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Insurance claim for loss of stock and loss of profit doubt

Accountancy

In paper 1 accounting the chapter of insurance claim for loss of stock and loss of profit Insurance claim for loss of stock formula 1. Amount of claim= insured value/total.cost.of stock on the date of fire Ã?loss of stock 2.claim subject to average clause= Any.of .policy/value of stock Ã?actual loss of stock 3.insurance claim = loss of stockÃ? insured value /total cost of stock Could you please anyone tell to me how to apply this formula for claiming the loss of stock I just confused????? Where I have to appropriate to apply

MPR Sanjay Kumar

CA Inter

★ 530

17-Apr-22 11:32

478

Answers (5)

Best Answer

Average clause is used when insured value is less than the stock available with you. If the question does not specify anything about the clause to be used, always use average clause.

Shankari C

CA Inter

★ 3K+

17-Apr-22 13:00

All the three formulae given by you are same . Can you be more specific on what needs to be cleared

Shankari C

CA Inter

★ 3K+

17-Apr-22 12:56

When I have to use average class? And when I have to use without average class formula????

Thread Starter

MPR Sanjay Kumar

CA Inter

★ 530

17-Apr-22 12:58

Thanks ð???

Thread Starter

MPR Sanjay Kumar

CA Inter

★ 530

17-Apr-22 13:07

Thread Starter

MPR Sanjay Kumar

Thanks ð???

Most welcome

Shankari C

CA Inter

★ 3K+

17-Apr-22 13:08