Liabilities | Amount | Assets | Amount | |
Furniture | 20,000 | |||
Debtors | 50,000 | |||
(-) Provision for doubtful debt | 5,000 | 45,000 | ||
Stock | 10,000 |
1. | All debtors are good; Stock is overvalued by 3000; Furniture brought upto 150% | (A) | Revaluation Profit = 6000 |
2. | All debtors are good; Stock is overvalued by 3000; Furniture increased to 24000 | (B) | Revaluation Profit = 26000 |
3. | All debtors are good; Stock is undervalued by 3000; Furniture brought upto 150% | (C) | Revaluation Profit = 12000 |
4. | All debtors are good; Stock is overvalued by 3000; Furniture increased by 24000 | (D) | Revaluation Profit = 18000 |
A) 1-[B]; 2-[C]; 3-[D]; 4-[A]
B) 1-[B]; 2-[C]; 3-[A]; 4-[D]
C) 1-[C]; 2-[A]; 3-[D]; 4-[B]
D) 1-[C]; 2-[D]; 3-[A]; 4-[B]
Correct Answer: C
Solution :
1-[C]; 2-[A]; 3-[D]; 4-[B]You need to login to perform this action.
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