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Insurance claim
Accountancy
In this question i am getting answer as 66,000 But in solution it is given as 64,000
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You calculated profit by considering 5% increase in sales amount but not considered 10% increase in cost of good sold So as per your calculations profit is 55,000 So, cost of good sold should be 50,000 (105000-55,000) But this 50,000 is before considering 10 % increase in cost of purchase Out of 50,000, 30,000 is from opening stock So, balance 20,000 is current period purchase which is affected to cost increase So, revised cost shoul be 20,000/100*110 22,0000 Revised cost of good sold=30,000+22,000 =52000 Revised profit=105000-52000 =53,000 (Fifo method assumption) Out of 88,000 purchase 22,000 cost of good sold along with 30,000 opening Balance=88,000-22,000 =66,000 After 2000 salvage 64,000 loss of stock
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