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Commerce · Q925

Accounting

Graduate and Post Graduate · Commerce · question 925

Q925

A piece of land was given to a firm free of cost six months back. Its fair value then was Rs. 12 lakhs and now it is worth Rs. 14 Lakhs. Under the conventional accounting system it will be reported in the Balance Sheet as on today at:

A.
12 lakhs
Answer
B.
14 lakhs
C.
2 lakhs
D.
Not to be reported at all

Answer: Option A

Solution

Answer: Option A
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