Accountancy, asked by garvitgupta119, 6 months ago

26. Raja Ltd. Purchased for Rs 50 lakh. At the end of the year the market value of such
securities was Rs 40 lakh. While preparing the financial statements, the company valued
the securities at cost i.e. at Rs 50 lakh. Is it a correct treatment? Explain in detail. (4) marks (answer in long)​

Answers

Answered by tcsthanekhodiy46
0

Answer:

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Answered by hodeee4
4

ANSWER

No. it is not a correct treatment. The company has violated the convention fo prudence according to which current assets are valued at cost price or realisable value whichever is less.

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