Question

() Stock is undervalued by 10% (Book Value of Stock 54,000)
(ii) Stock is overvalued by 10% (Book Value of Stock 66,000)
(i) Value of Land & Building is to be increased to 35,00,000 (Book Value
4,00,000)
(iv) Value of Land & Building is to be increased by 5,00,000 (Book Valve
4,00,000)
(v) A debtor whose due of $40,000 was written off as bad debts last year, paid
30,000 in full settlement.
(vi) An old customer, whose account was written off as bad debts has promised to
pay 15,000 in full settlement of his account of 25,000.
(vii) A liability for claim, included in creditors for $20,000 is settled at 16,000.
viii) A computer purchased on 1st October 2016 for 40,000 debited to Office
Expenses Account is to be brought into account on 31st March 2018 charging
depreciation @10% p.a. on written down value basis.​

Answer 1

Answer:

stock is undervalued by 10%