Sauvelane bank must allocate a portfolio adjustment of 30,000 (decrease in value) to the three items of the group, with gross amounts of 600,000, 300,000 and 100,000. Case convention: allocation in proportion to each item's gross amount, the basis being used consistently. Compute the share of the adjustment allocated to each item.
- Portfolio adjustment (decrease)
- 30,000
- Gross amount of item A
- 600,000
- Gross amount of item B
- 300,000
- Gross amount of item C
- 100,000