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Finished Goods costing worth Rs. 10 lakhs were damaged due to floods in July, 2020. These goods were included in the Closing Stock as on 31st March 2021, at an estimated Realizable Value of Rs. 4 Lakhs. These goods, ultimately, could be sold for Rs. 3 Lakhs only in the accounting year 2021-2022. The difference of Rs. 1 Lakh is debited to Prior Period Expenditure in the accounting year 2021-2022. Is this treatment correct?

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