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A concern proposes to discontinue its business from December, 2020 and decides to dispose of its plants within a period of 3 month§. The Balance Sheet as on 31st December, 2020 should continue to indicate the plants at its historical costs as the assets will be disposed of after the Balance Sheet date. [Nov. 2020, 2 Marks]

Options

A
B
C
D
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Correct Answer

✅ Option — Correct Option

All Options:

  • A
  • B
  • C
  • D

Detailed Solution & Explanation

False: As per going concern concept any business shows its Fixed Assets at its historical cost but in case of discontinuance of business they should be shown at their expected realizable value.

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