Andrew consigned 10,000 kgs of groundnut oil to Braeden of Berlin at $ 15 per kg. Expenses incurred by Andrew being $ 7.500 for freight and $ 2,500 for insurance. During transit 500 kgs of oil were destroyed due to accident and the insurance company accepted the loss to the extent of $ 7,000 Braeden received the balance of consignment and sold 7,000 kgs of oil at $ 20 per kg 100 kgs of oil were lost due to leakage. Calculate the abnormal loss and the value of the closing stock Iving with the consignee.

Andrew consigned 10,000 kgs of groundnut oil to Braeden of Berlin at $ 15 per kg. Expenses incurred by Andrew being $ 7.500 for freight and $ 2,500 for insurance. During transit 500 kgs of oil were destroyed due to accident and the insurance company accepted the loss to the extent of $ 7,000 Braeden received the balance of consignment and sold 7,000 kgs of oil at $ 20 per kg 100 kgs of oil were lost due to leakage. Calculate the abnormal loss and the value of the closing stock Iving with the consignee.

Name: Andrew consigned 10,000 kgs ofgroundnut oil to Braeden ofBerlin at $
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Description: Andrew consigned 10,000 kgs ofgroundnut oil to Braeden ofBerlin at $ 15 per kg. Expensesincurred by Andrew being $7.500 for freight and $ 2,500 forinsurance. During transit 500 kgsof oil were destroyed due toaccident and the insurancecompany accepte

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 59P

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