MODEL ANSWER

Name: - Rohit Kumar Shaw

Roll No: - 88
Class: - 1st Semester Sec: - B
Subject: - Business Accounting (BA)
Faculty: - Mr. Madan Mohan Dutta
College: - J.D. Birla Institute (Department Of Management)

Q> What are insured standing charges?

(Ans) Insured standing charges fall under the Loss of Profit Policy in Insurance Claims.
The insured standing charges are those charges specified in the policy which the insured
desires to recover in the case of an accident. It may include the following: 1.
2.
3.
4.
5.
6.
7.
8.
9.

Rent, rates and taxes (not related with the profit of the business);
Interest on debentures and loans;
Salaries of permanent staff;
Wages of skilled workers;
Directors fees;
Auditors fees;
Advertising;
Traveling; and
Unspecified standing charges (not exceeding 5% of the amount of specified
standing charges).

BIBLIOGRAPHY
1. Class notes.
2. Financial Accounting Hanif & Mukherjee.