On Arti's retirement,stock appeared in the books of the firm at Rs. 160000 and Machinery at Rs. 500000. On revaluation, it was found that stock is undervalued by 20% and Machinery is overvalued at 25%. There were bad debts amounting to Rs. 10000. Loss on revaluation will be?
Answers
Answered by
20
Profit on revaluation will be Rs 83,000
Explanation:
Revaluation Account
To Stock 32,000 By Machinery 1,25,000
To Bad debts 10,000
To Profit on Revaluation 83,000 (Bal Figure)
**** Reduction in the value of stock (160000*20/100=32000)
Increase in the value of Machinery (500000*25/100=125000)
Answered by
12
7800
103000
9500
70000
Explanation:
why my answers is wrong
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