Question

If the partner taken some of the sundry asset at Rs 7200( being 10% less than book value ) it's book value is​

Answer 1

Answer:

8,000

Explanation:

Let say the book value was 1.00x and after 10% reduction, the amount becomes 0.90x (1.00 - 0.10).

Here, 7,200 is 0.90x

So x is 7,200 / 0.90 = 8,000

Answer 2

Given:

Value of sundry asset = 7200

Lesser rate than the book value = 10%

To Find:

The book value of the asset

Solution:

Sundry assets are the insignificant items that an enterprise owns such as restricted cash or an unimproved area/land.

Rate = 10%

Thus, the rate charged will be = 100 - 10

= 90

Calculating the book value of sundry assets taken by the partner

=  7,200 × 100/90

= 720000/90

=  8 , 000

Answer: The book value of the asset is Rs. 8000.