A business has a closing stock of ₹60,000, its NRV is ₹55,000. Stock will be valued at: MCQ with Answer and Explanation

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A business has a closing stock of ₹60,000, its NRV is ₹55,000. Stock will be valued at:

A. ₹57,500

B. ₹60,000

C. ₹60,000 or ₹55,000 at option

D. ₹55,000

Answer: Option D

Solution (By JKSSB Mock Tests)

Prudence requires stock at lower of cost or NRV, so ₹55,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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