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Replacement cost
It is the cost of replacing a material or asset, by purchase from the current market.
If an X material was originally purchased @ Rs. 250 per Kg. And know it can be replaced by the purchase from the market at the current rate of 280 per kg, the replacement cost is Rs. 280 per Kg.
Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors
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