adjustmet frome final account for SP

Accountancy

Bank overdraft is secured against hypothecation of stock. Bank overdraft outstanding as on 31.3.2020 has been considered as 80% of real value of stock (deducting 20% as margin) and after adjusting the marginal value 80% of the same has been allowed to draw as an overdraft. GIVEN OVERDRAFT 320000 NOw how to calculate closing stock..first I thought 320000/80% i.e 400000 is closing stock but answer is 500000

Harshitha Kalidindi

CA Final

★ 51K+

10-Mar-22 07:27

4K+

Answers (2)

(320000/80%)/80%

Sudha Reddy

CA Final

★ 20K+

11-Mar-22 15:36

It will be be 3.2L/80% = 4L and then again 80% of that which gives us 5L (value of stock)

Sahibdeep Singh

CA Inter

★ 14K+

11-Mar-22 15:37