Final accounts

Sahibdeep Singh

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

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

sai t

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

sai t

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

Sahibdeep Singh

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