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    Hi Everyone,

    I want to ask something about the going concern principle in the balance sheet.

    I bought 20 shirts at $5 each and could only sold 18 shirts.
    My B/S should look like the below:

    Assets:
    Inventory 10
    Cash 180

    Liabilities:
    Accounts Payable 100

    Equities:
    Capital 90

    If I ignore the going concern, the remaining 2 shirts will be sold at their break-up value (lets say $4).
    How can the B/S balance if I reduce the inventory value to $8? What will the B/S look like.

    Thanks!!!
 
 
 
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