AS - 2

This query is : Resolved

mazahir (Querist)
Follow

22 June 2010 As per AS-2, Finished Goods has to be valued at cost which includes conversion cost to transform RM to FG. So while valuation of goods, Conversion cost will be included.

Also In Accounts, all the manufacturing expenses are debited to Production expenses A/c which goes to P&L.

So here, there are two debits - 1) Increasing the Inventory Valuation to the extent of Conversion Cost and 2) The same duplicate debit is in Manufacturing Expenses A/c.

Ideally speaking, the manufacturing expenses to the extent incurred on FG should be credited and debited to Inventory A/c.

Please answer the same.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

22 June 2010 Since the closing stock appreaing as credit your Debit of Expenses and same recognaised as credit will match

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

22 June 2010 Since the closing stock appreaing as credit in P&L your Debit of Expenses and same recognaised as credit will match

mazahir

mazahir (Querist)
Follow

22 June 2010 Thank You Sir. I got your answer.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RADHAKRISHNAN A R

ASHOK KUMAR TEKURU

giriswar

Credible HRM

atul kumar soni

Subscribe Now

AS - 2

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA