alleryStart learning →Long term shares costing Rs 80,000 fall to Rs 60,000 and the fall is not temporary. Charge to profit and loss?
ARs 20,000
BRs 60,000
CNil
DRs 80,000
Answer & Solution
Correct answer: A. Rs 20,000
The carrying amount is cut from 80,000 to 60,000, and the 20,000 reduction is charged to profit and loss.
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