Question

stock show in balance sheet is 160000 , stock undervalued by 20% ____ ? , and cost of stock ___​

Answer 1

Answer:

Let the original cost of stock be x

Then, x - 20%x = 1,60,000

80%x= 160000

x= 200,000

Therefore, the cost of stock is Rs 2,00,000

Answer 2

Answer:

The cost of stock is 2,00,000 and it is undervalued by 40,000.

Explanation:

The stock exhibited in Balance Sheet ⇒ Stock is underrated by a 20% ⇒ Cost of stock

1,60,000⇒40000⇒200000

The stock is undervalued by 20 percent so let the accurate value be 100, value exists provided =100-20=80.

So the value of 80=160000 and 100=?

So cross multiplication which =100 value exists 200000 and is undervalued by 40000.

Hence, The cost of stock is 2,00,000 and it is undervalued by 40,000.