alleryStart learning →A plant worth Rs 5,00,000 burns down after the year end. Year-end balance sheet value?
ARs 10,00,000
BRs 5,00,000
CRs 1,00,000
DRs 2,50,000
Answer & Solution
Correct answer: B. Rs 5,00,000
The fire arose after the year end, so it is a non-adjusting event and the year-end carrying amount stays Rs 5,00,000 with disclosure.
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