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In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400?
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In a draft balance sheet, the stock at a value of Rs. 1,00,000 was sho...
Adjustment of stock value in Trading A/c:

Explanation:
When finalizing the balance sheet, it is important to adjust the value of the stock to its realizable value if it is lower than the book value. In this case, the stock was originally shown at Rs. 1,00,000 on the asset side of the balance sheet. However, upon closer evaluation, it was found that the realizable value of the stock was only Rs. 26,000, which is lower than the book value of Rs. 37,400.

Impact on Trading A/c:
- The Trading A/c is a nominal account that records all revenues and expenses related to the trading activities of the business.
- In this case, the adjustment of the stock value from Rs. 37,400 to Rs. 26,000 would result in a decrease in the value of the closing stock.
- Therefore, the stock would be shown as Rs. 88,600 in the Trading A/c, which is the adjusted realizable value of the stock after considering the discrepancy.

Correct Answer: B- Rs. 88,600
By making this adjustment in the Trading A/c, the financial statements will reflect a more accurate representation of the business's financial position and performance.
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In a draft balance sheet, the stock at a value of Rs. 1,00,000 was sho...
88600
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In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400?
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In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400?.
Solutions for In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400? defined & explained in the simplest way possible. Besides giving the explanation of In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400?, a detailed solution for In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400? has been provided alongside types of In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400? theory, EduRev gives you an ample number of questions to practice In a draft balance sheet, the stock at a value of Rs. 1,00,000 was shown on the asset side. While finalizing the balance sheet, an item which was valued at Rs. 37,400 had realizable value of Rs. 26,000 only. In the Trading A/c, the stock would be shown as- A- Rs. 1,00,000 B- Rs. 88,600 C- Rs. 1,26,000 D- Rs. 1,37,400? tests, examples and also practice CA Foundation tests.
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