Accountancy, asked by kinglohith, 10 months ago

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.

Answers

Answered by khungerumesh
20

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

Answered by akarshgaurav01p3u1gn
31

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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