E Ltd, a dealer in second-hand machinery has the following five machines of different models and makes in their stock at the end of the financial year 2012-13 Machine A B C D E Cost (in lakhs) 0.9 1.15 2.75 1.00 2.10 Net
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
E Ltd, a dealer in second-hand machinery has the following five machines of different models and makes in their stock at the end of the financial year 2012-13 Machine A B C D E Cost (in lakhs) 0.9 1.15 2.75 1.00 2.10 Net realizable value (in lakhs) 0.95 1.55 2.65 1.25 2.00 The value of stock included in the Balance Sheet of the company as on 31 st March, 2013 was —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) ₹7,70,000. Item-wise lower of cost and NRV: 0.90 + 1.15 + 2.65 + 1.00 + 2.00 = 7.70 lakh.
Topics: Fundamentals of Accounting
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