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The stock showed in Balance Sheet → Stock undervalued by 20% → Cost of Stock₹1,60,000 → __________→ __________ |
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Answer» The stock showed in Balance Sheet → Stock undervalued by 20% → Cost of Stock ₹ 1,60,000 → ₹ 40,000 → ₹ 2,00,000 The stock in undervalued by 20 percent so let the correct value be 100, value is given = 100 - 20 = 80 So the value of 80 = 160000 and 100 = ? So cross multiplication which = 100 value is 200000 and it is undervalued by 40000. |
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