Accounts Received

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The cover provided by this section indemnifies the Insured in respect of loss sustained by the Insured in consequence of loss or damage to records of outstanding debit balances and the amount payable as indemnity hereunder shall not exceed:

  1. The difference between
    1. the total of outstanding debit balances at the date of the damage
    2. The total of all sums in respect thereof as are actually  received from customers or traced to them.
  2. The reasonable additional expenditure incurred after the damage with the previous consent of the Insurers in tracing and establishing the said outstanding debit balances including collection costs in excess of normal collection costs and made necessary because of such loss destruction or damage.For the purposes of this section the term “outstanding debit balances” shall mean:The total of the outstanding debit balances as reflected on the Insured’s statements at the end of the month preceding the damage adjusted for:
    1. Bad debts
    2. Amounts debited (or invoiced but not debited) and credited (including credit notes and cash not passed through the books at the time of the damage) to customer’s accounts in the period between the date to which the said statement relates and the date of the damage and any abnormal conditions of trade which had or could have had a material effect on the business so that the figures thus adjusted shall represent as nearly as reasonably practicable those which would have been obtained at the date of the damage had the damage not occurred.