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Session Plan : Practice: Salvage value, Average Clause - Claim for loss of stock
Session Plan : Practice: Salvage value, Average Clause - Claim for loss of stock
1️⃣ 0–5 min: Introduce salvage value and the need for Average Clause in fire insurance.
2️⃣ 5–15 min: Explain step-by-step method for computing loss of stock and claim amount.
3️⃣ 15–30 min: Solve numerical examples involving salvage value & underinsurance (Average Clause).
4️⃣ 30–40 min: Practice variations – correct/incorrect GP%, valuation errors, stock estimation.
5️⃣ 40–45 min: Recap formulas and discuss 5 important exam questions.
Learning Material (IV Quadrant Approach)
Learning Material (IV Quadrant Approach)
(Q2) : Video Based Content (Youtube)
(Q2) : Video Based Content (Youtube)
(Q3) : Formative Assessment (Google Form/Any Other Online Quiz Platform)
(Q3) : Formative Assessment (Google Form/Any Other Online Quiz Platform)
(Q4) : Further Reading
(Q4) : Further Reading
Recommended Books & Texts
Recommended Books & Texts
Accounting for Business (3rd ed) — A textbook focused on how accounting supports business decision-making and is suitable for non-specialist managers and business students. Goodreads
Accounting for Business Studies by Aneirin Owen — Integrates accounting with business & management studies, emphasising the commercial context. Routledge
Business Accounting (v.2.0) (free online text) — Covers many fundamental accounting topics; good for self-study. 2012 Books
Accounting, The Language of Business by JoAnn Wood — Openly-licensed, explains accounting as a communication tool in business. Boise State Pressbooks
Useful Online Resources
Useful Online Resources
Open Textbook Library: “Accounting Principles: A Business Perspective” and others — free downloadable textbooks covering core accounting topics. Open Educational Resources
Guides listing recommended books for accounting and business: e.g., “Business Recommended Reading by Subject: Accounting”. BYU Library Guides+1
Articles on accounting fundamentals: e.g., “What Is Accounting? | Introduction to Business” explains accounting as the language of business.
Key Questions
Key Questions
IMPORTANT QUESTIONS
IMPORTANT QUESTIONS
Define salvage value. How does it affect the computation of loss of stock?
What is the average clause? Explain with a numerical example.
Explain the steps in calculating a fire insurance claim for stock.
How is stock on the date of fire estimated using gross profit?
A stock worth ₹1,80,000 is insured for ₹1,20,000. Loss is ₹80,000 and salvage is ₹10,000. Compute claim.
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