A businessman purchased goods for ₹25,00,000 and sold 70% of such goods during the accounting year ended on 31 st March, 2013. The market value of the remaining goods was ₹5,00,000. He valued the closing stock at ₹5,00,0
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
A businessman purchased goods for ₹25,00,000 and sold 70% of such goods during the accounting year ended on 31 st March, 2013. The market value of the remaining goods was ₹5,00,000. He valued the closing stock at ₹5,00,000 and not at ₹7,50,000 due to
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) Conservatism concept.
Topics: Fundamentals of Accounting
Related Questions in this Topic
- A company purchased plant for ₹50,000. The useful life of the plant is 10 years and the residual value is ₹5,000. The ma...
- The convention of conservatism is likely to lead to an ______ in the balance sheet :
- A concern proposes to discontinue its business from March 2013 and decides to dispose of all its assets within a period ...
- E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on applicatio...
- X, Y and Z are partners sharing profits and losses equally. Their capital balances on March. 31. 2012 are ₹80,000, ₹60,0...