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Stock costing Rs 40,000 has a market value of Rs 35,000. At what value is closing stock shown?
ARs 37,500
BRs 75,000
CRs 40,000
DRs 35,000
Answer & Solution
Correct answer: D. Rs 35,000
Closing stock is valued at cost or market value, whichever is lower, so Rs 35,000.
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