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Insurance claims for loss of stock

ICAI Material In Illustration 1, we are subtracting written off value from opening stock in next year. But I dont understand why in Illustration 5 and 6, we are adding back the written off value to the closing stock in previous year. Then the written off will not be effected, right? Also we did not subtract the value from opening stock in the next year. Please explain why we are cancelling the "writing off" and where should we all do this. I've attached Illustration 1 and 5 (5 and 6 are similar)

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illus.pdf


susee arunachalam

susee arunachalam

CA Inter

19K+

24-Sep-20

49

Answers (4)

Illustration 5, we are preparing Trading Account for Year 1. In Illustration 1, we are arriving at stock as on date of fire.


Suraj Lakhotia

Suraj Lakhotia

Admin

24-Sep-20

Should we do the same method in all trading account sums, sir?


Thread Starter

susee arunachalam

susee arunachalam

CA Inter

19K+

24-Sep-20

Depends on question. Which date are you computing stock.


Suraj Lakhotia

Suraj Lakhotia

Admin

24-Sep-20

Suraj Lakhotia Admin

Depends on question. Which date are you computing stock.

Okay sir thank you


Thread Starter

susee arunachalam

susee arunachalam

CA Inter

19K+

24-Sep-20

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