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Can anyone plz explain the 6th adjustment ?

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Meda Jeevansai

Meda Jeevansai

CA Foundation

11K+

12-Mar-21 08:10

14

Answers (6)

Best Answer

It means that bank overdraft is secured against value of stock. Bank said that overdraft amount to be considered can be 80% of value of stock. And further, only 80% of amount which could be considered has been allowed. So, bank overdraft as appearing in the books is 80% of (80% of Stock Value). Now, this adjustment can be used for calculation of closing stock. Closing stock will be - Rs.[1,60,000 X 100/80] X 100/80 = Rs.2,50,000


Sahibdeep Singh

Sahibdeep Singh

Moderator

12-Mar-21 11:36

Sir is this type of assignments will be asked in exam??

Adjustment


sai t

sai t

CA Foundation

295

15-Mar-21 08:39

Sir is this type of assignments will be asked in exam??

Yes Sai, they may be asked. Infact, this question is part of Oct 2020 Mock test!


Sahibdeep Singh

Sahibdeep Singh

Moderator

15-Mar-21 12:02

Yes Sai, they may be asked. Infact, this question is part of Oct 2020 Mock test!

OK sir thank you


sai t

sai t

CA Foundation

295

15-Mar-21 12:08

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