As-2 closing stock

This query is : Resolved

CA Mahesh (Querist)
Follow

23 July 2012 Dear Sir,

My client is manufacturing a liquor and he is giving some gift articals ( eg; bags , watches, gold coins )to the retalers ans suppliers for sales promotions.

but these items cost they are treating as a expenses . they are not treating as a Stock.

my doubt is whether these gift articales

Can we treat as Expenses or Inventoty ?

because these items value is very high.

if inventory means please give some reference

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
Follow

24 July 2012 its not a inventory
its an expense
value of item is of no relevance (high Value)

Because As per AS-2
Following Items are considered as Inventory (stock):
1. Raw Material – the items which are used for manufacturing Finished goods and it also includes packing Materials & other Such Items
2. Finished Goods
3. Semi-Finished Goods

CA Mahesh

CA Mahesh (Querist)
Follow

25 July 2012 ho, thank you so much sourabh

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

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

deepak

Sasidhar B

Aniruddha Mody

Vinod Patil

THOMAS JOHN

Subscribe Now

As-2 closing stock

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Accountant

Article Assistant

GST CONSULTANCY

CA Final