Accounting treatment of excess stock on book during survey

Save Share

This query is : Resolved

Bhavesh Gohel (Querist)

15 June 2017 Dear Experts.

Income Tax Survey During December 2016 and Department Found Excess Stock in Books against Physical Stock Verification. and declare 14% Amount of Excess stock as GP value addition.
My Question is that ..
what is the Treatment of Excess stock in books..?
what is the proper accounting Treatment..?

Waiting for experts review..

Amol S Joglekar

Amol S Joglekar (Expert)

15 June 2017 since you have agreed for a 14% addition in GP, credit the said amount to an account named and styled as "addition accepted during survey" and reduce that much amount from the Stock register

Bhavesh Gohel

Bhavesh Gohel (Querist)

15 June 2017 agreed with you sir.... but what about stock differ quantity...?

Amol S Joglekar

Amol S Joglekar (Expert)

15 June 2017 That is what i said : reduce that much amount of stock from stock register......quantity wise as well as value wise.
It is a bit unmatched kind of job yet you need to adjust the same....... quantity wise as well as value wise.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now