Question

Adarsh Co’s Balance Sheet shows Fixed Asset Rs. 2,46,500. At the time of absorption calculation of Net Assets is 15% less than the market value, then market value of such fixed assets is​

Answer 1

Answer:

let assume the market value be 100%

it is considered 15% less

then present value of fixed assets is 100% - 15% = 85%

if 85% = 2,46,500

then 100% = 2,46,500×100/85 = 2,90,000

Answer 2

Given:

Fixed Asset = 246500

Net assets = 15%

To Find:

The market value of such fixed assets

Explanation:

Let us assume the market value = 100%

Now according to the question it is considered 15% less

Hence the present value of fixed assets

                                         =100% - 15%

                                         = 85%

Now for 85% = 2,46,500

then 100% = 2,46,500×(100/85)

                 = 2,90,000

Answer = 2,90,000.