Reference no: EM132948066

Question - On 31st May, 2015 a fire damaged the premises of Shyam Bros, and the business of the company was disorganized until 31st August, 2015. The firm is insured under a loss of profit policy for Rs. 2,20,000 with six month's period of indemnity. The firm's accounts for the financial year ended 31st March, 2015 showed a turnover of Rs. 14,00,000 with net profit of Rs. 1,60,000; the standing charges covered under insurance and debited in the accounts amounted to Rs. 4,00,000. The turnover for the twelve months ended 31st May, 2015 was Rs. 15,60,000; during the period of dislocation it was Rs. 1,60,000, whereas during the corresponding period in the preceding year it was Rs. 3,40,000. A sum of Rs. 44,800 was spent to reduce the effect of the loss, but there was no saving of standing charges as the result of fire. Prepare the claim to be submitted to the insurance?