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Continuing MINDA SAR: at Y3 end, FV ₹141; actual exercise 85%. Compute Y3 incremental expense.
A+₹73,040 (additional expense)
BY3 reversal = ₹26,510
CY3 expense = ₹13,18,350
D− ₹73,040 (REVERSAL — Y3 cumulative liability = 11,000 × 85% × 141 = ₹13,18,350; prior cumulative was ₹13,91,390; Y3 reduction of ₹73,040 credited to P&L)
Answer & Solution
Correct answer: D. − ₹73,040 (REVERSAL — Y3 cumulative liability = 11,000 × 85% × 141 = ₹13,18,350; prior cumulative was ₹13,91,390; Y3 reduction of ₹73,040 credited to P&L)
Cumulative at Y3 = 11,000 × 85% × ₹141 = ₹13,18,350; prior cumulative ₹13,91,390 → Y3 reduction = ₹73,040 credited to P&L. Settlement = ₹13,18,350 paid in cash, liability cleared.
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