3. K. Buta had an opening stock of Shs. 20,000/= and a closing stock of Shs. 25,000/=. His net purchases for the year amounted to Shs. and a 40% mark up is applied. His expense for the year was Shs. 28,600/=. Find the:-
4. Anita and Beatrice were travelling from Iringa to Dar es Salaam using Beatrice's car which is insured. When they reached Kibaha their car was involved in an accident and it was badly damaged. Anita decided to go to the National Insurance Company to ask for compensation. The company didn't agree to give compensation for the car.
(a) Why did the company refuse to compensate Anita's claim?
(b) Which principle of insurance was applied by the company?