Capital maintenance

Accountancy

How is Rs.14400 computed? I have attached the SS of Qus

CYNOPHILE S

CA Inter

★ 925

12-Jul-23 12:14

575

Answers (2)

Best Answer

Here current purchasing power is to be taken ie, Rs 3. So opening value 12000 is indexed at 125 with a unit price of rs2.we need to convert to the actuals of current year. =12000/125*100 gives the actual spent @rs 2. We nned to value it at rs3 because it is what we actually spent =9600/2*3=14400 will be the openning.

Sajan Gangadharan

CA Final

★ 9K+

12-Jul-23 12:57

General price index is missing in question. It should be 120. 12000*120/100

Jitendra Kumar

CA Final

★ 41K+

12-Jul-23 12:50