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Shyam purchased a building for ₹20 lakh....

Shyam purchased a building for ₹20 lakh. However, due to boom in the property market, the current market value of the building is ₹28 lakh. State the value at which building should be recorded in the books of accounts. Also, give reasons for the same.

Text Solution

Verified by Experts

Building will be shown in the books at ₹ 17 Lakh.
This is because of Historical Cost Concept according to which assets are shown in the books at cost less depreciation.
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