Total assets is ₹ 22,50,000, Fixed assets ₹ 20,00,000 valued at 10% above the book value and miscellaneous expenditure is ₹ 2,50,000 and 12% Debentures ₹ 4,00,000. The value of NAV as per the Net Assets Method will be ..
CS Executive · Corporate and Management Accounting · PYQS · June 2023
Total assets is ₹ 22,50,000, Fixed assets ₹ 20,00,000 valued at 10% above the book value and miscellaneous expenditure is ₹ 2,50,000 and 12% Debentures ₹ 4,00,000. The value of NAV as per the Net Assets Method will be .........
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C), (D). Official source note: The Net assets’ value can be obtained at book value or market prices. If book value will be considered then option D (₹ 1600000) is correct i.e. 2250000 (Total Assets) -250000 (misc. ex p) -400000 (Debenture). If market value is considered then option C (₹ 1800000) is correct i.e. 2000000 (Fixed Assets) + (Revaluation 10% of 2000000) - 400000 (Debenture).
Topics: Valuation of Shares
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