Question

Stock is undervalued by 10% and it is to be adjusted properly. Value of stock is 54000

Answer 1

Answer:

you can take correct value of stock as x

then, x - (10% of x) = 54000

hence, correct value of stock is 60,000

entry would be

stock dr 6000

to revaluation 6000

( being stock undercasted, now rectified)

if its admission question use revaluation ac

if rectification question use suspense ac in credit side )

hope it helps

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