Question

Stock on the date of valuationis 270000 it had been undervalued by 10% actual value is

Answer 1

Answer:

let the actual value of the stock be 100%

undervalued = 10%

present value = 90% (100% - 10%)

if 90% of stock = 2,70,000

then 100% = 2,70,000×100/90 = 3,00,000

thr actual value of stock = 3,00,000

Answer 2

The Actual value of the stock is ₹3,00,000.

To calculate the closing stock by the end year we need to find the correct value of the closing stock by multiplying it by its own percentage.

stock as of the year-end = 270000

stock is undervalued by 10% that is it's 90% in the value.

To find the actual value we need to make its value 100%

Actual value of stock = 270000*100/90

                                     = ₹300000

₹300000 will be shown as closing stock under the head asset of the balance sheet.