alleryStart learning →Long term holdings: P cost 40,000, value 30,000 (lasting fall); Q cost 25,000, value 30,000. Carrying total?
ARs 55,000
BRs 65,000
CRs 70,000
DRs 60,000
Answer & Solution
Correct answer: A. Rs 55,000
P is reduced to 30,000 while Q stays at cost 25,000 because gains are not recognised, so the total is 55,000.
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