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I came for the regular updates and also follow us on Instagram so have Academy now let's go to the video hi everyone this is the fourth problem of fire insurance claim and in this video we are going to solve this problem which is based upon average cloth now what do I mean by average cloth see it is when the policy amount is less than the closing stock the clothing stock on the date of fire it is the closing stock is more than the policy amount it means that the amount of stock that is insured is less than the less than the actual stock that is there on the date of fire right so when this happens that means your cushion is based upon average cloth, but you need to know that the policy amount will be given in the question but the closing stock on the date of fire will not be given it will not be given, so you have to find out the closing stock on the date of fire by preparing the memorandum trading account yes that is what we get in the previous three problems you saw that right okay if you haven't then please watch those videos first okay because you will get confused over here, so please watch those video first I will put the links in the description below now we'll discuss the average Clause later now let's go through the question first see fire occur in the premises of apps on limited on 2 7 2019 ok this is the date of the fire now this is very important ok here the dates are very important then the following were ascertained from the records, so they have given us some records here see stock on 1 1 2018 see this is what this is opening stock why because it is at the beginning of the year 1 1 right first January it can also be a purl okay 1 for all right okay so 45000 and then closing stock is given stock on 31 12 at the end of the year, so this is the closing stock of 2018 the ears are also very important here ok keep that in mind because here there will be a previous year and the current year the current year will be the date of fire and the previous year alright so let's see purchases during the year 2018 — the purchases of 2018 is given sales of 2018 is given right phyla 36 6 like 75 and then again the purchases and sales of the current year up to date of fire is given C 29 during the year 2019 up to the date of fire, so these are the purchases and sales till the date of fire these are of current er3 locate lakh 60000 simple and then as you know the fire occurred in the promises of ABS and limiter so of course their stock will be destroyed right, but some stock will be saved okay that is what is meant by salvage stock the stock that is saved from the fire right, so salvage stock is 33000, and then they have said there was a practice in the business to value stock at cost less than percent that means they used to value the stock at less than person for example just for an example if the stock was one leg they used to value it at 90 thousand yeah simple in simple meaning that for example if there was one lakh of stock then they used to...
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