Bank overdraft is secured against hypothecation of stock. Bank overdraft outstanding as on 31.03.2004 has been considered as 80% of real value of stock (deducting 20% as margin) and after adjusting the marginal values 80% of the same has been allowed to draw as on overdraft.
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Explanation:
20% of the value of stock is considered as margin whereas 80% remaining 80% i is amount of bank overdraft which is allowed by the bank
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Explanation:
Answer:
Explanation:
Here the bank overdraft is equal to 80% of the cost price of stock and the stock is represented at marginal value.. And the marginal value is deducted 20% which is equal to the cost price of stock,. So the equation is X-X*20%= cost value(here X is marginal value)...... Or alternatively the marginal value is equal to 80% of the same i.e. cost price of the stock so X*80%= cost value and the cost value*80%= bank overdraft.
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