Disclaimer The Suggested answers hosted in this blog do not constitute the basis for evaluation of the students' answers in the examination. The answers are prepared by our team with a view to assist the students in their education. While due care is taken in preparation of the answers, if any error or omission are noticed, the same may be brought to our attention through comments. The blog owner is not in anyway responsible for the correctness or otherwise of the answers published herein. Pending answers Question 5 Old Course answers November 2020 1(a) (i) Since, net realisable value is less than cost, closing inventory will be valued at Rs. 4000. Therefore, closing inventory is Rs. 4,000 x 50 = 2,00,000/- 1(a) (ii) The event is a non-adjusting event since it occurred after the year-end and does not relate to the conditions existing at the year-end. However, it is necessary to consider the validity of the going concern assumption having regard to the extent of insurance cover. 1(...