1.

The stock showed in Balance Sheet → Stock undervalued by 20% → Cost of Stock₹1,60,000  → __________→ __________

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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