alleryStart learning →A Q1 inventory write-down of Rs 80,000 is re-estimated at Rs 50,000 in Q2. What is done in Q2?
AMake no entry at all
BRestate Q1 to 50,000
CAdd Rs 50,000 loss
DReverse Rs 30,000
Answer & Solution
Correct answer: D. Reverse Rs 30,000
The original estimate is changed in the later interim period by reversing the excess 80,000 minus 50,000 = 30,000, without restating Q1.
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