Answer Happy

QUESTION 164 The draft results of Surya Ltd. for the year ended 31st March, 2020, prepared on the hitherto followed accounting policies and presented for perusal of the board of directors showed a deficit of * 10 crores. The board in consultation with the managing director, decided to value year-end inventory at works cost (* 50 crores) instead of the hitherto method of valuation of inventory at prime cost (* 30 crores). As chief accountant of the company, you are asked by the managing director to draft the notes on accounts for inclusion in the annual report for 2019-2020.