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Doubt in 2023 ca foundation final acounts problem
Accountancy
What do you mean by bank overdraft is secured against hypothecation of stock ? I have attached file . In this problem 6th adjustment i am having lot of confusion due to lengthy adjustment so make clear please. I didn't understand closing stock calculation in this problem. Closing stock answer is Rs 250000
Answers (5)
Best Answer
Rishita Agarwal
Can u please explain why have u done it this way please
Here, the stock is represented at marginal value, and the bank overdraft is equal to 80% of the cost price of the stock. . Additionally, 20% of the marginal value-the stock's cost-is subtracted. Consequently, X-X*20% cost value (here X is marginal value). Alternately, the marginal value is equivalent to 80% of the cost price of the stock, making X*80% equal to the cost value and the cost value*80% equal to a bank overdraft. • You can avoid overdraft and dishonor costs by using an overdraft to access additional funds through your transaction account up to an approved overdraft limit. . Interest is only assessed on overdraft balances (when fees are paid on time)
Sai G
Sorry ignore the above one this how I used to derive 160000*100/80*100/80=250000
Can u please explain why have u done it this way please
This is explained in the live revision session done last week https://www.youtube.com/live/8SvKvtIbUyM?feature=share&t=3017
