100 units cost Rs 40 each, sell at Rs 55 less Rs 20 selling cost each. Write-down?
ARs 500
BRs 1,500
CRs 4,000
DRs 3,500
Answer & Solution
Correct answer: A. Rs 500
NRV per unit is 55 - 20 = Rs 35, which is Rs 5 below cost, so 100 units are written down by Rs 500.
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