A fire occurred on 1st February, 2006, in the premises of Pioneer Ltd., a retail store and business was partially disorganised upto 30th June, 2006. The company was insured under a loss of profits for Rs. 1,25,000 with a six months period indemnity. From the following information, compute the amount of claim under the loss of profit policy.
- Actual turnover from 1st February to 30th June, 2006 80,000
- Turnover from 1st February to 30th June, 2005 2,00,000
- Turnover from 1st February, 2005 to 31st January, 2006 4,50,000
- Net Profit for last financial year 70,000
- Insured standing charges for last financial year 56,000
- Total standing charges for last financial year 64,000
- Turnover for the last financial year 4,20,000
The company incurred additional expenses amounting to Rs. 6,700 which reduced the loss in turnover.There was also a saving during the indemnity period of Rs. 2,450 in the insured standing charges as a result of the fire.There had been a considerable increase in trade since the date of the last annual accounts and it has been agreed that an adjustment of 15% be made in respect of the upward trend in turnover?