CBSE · Class 11 · Accountancy · Financial Statements - IIIf closing stock is given outside the trial balance, it is valued at:
Step-by-Step Solution
Closing stock given outside the trial balance is valued at cost price or net realizable value, whichever is lower, as per the conservatism principle.
Detailed Options Breakdown
Option : Cost price only
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 1: Market price only
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
Option 2: Cost price or Market price, whichever is lower (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Cost price or Market price, whichever is higher
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - II.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - II. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - II Revision Notes.