AS2-Valuation of inventories
This query is : Resolved
04 February 2010
Can anyone please help me to solve this:
Xltd is selling TV sets, purchase price of the same is Rs.15000 as per the terms of sales. They are to be delivered and installed at customers place free of cost. X ltd has hired Y co for the purpose and being paid Rs.1000 per set for delivery and installation.At year ended on 31.3.2002, 10 sets were in stock. The market price of TV is Rs 15,750. what is the value of closing stock as per AS2? please help to solve this conceptually.
Xltd is selling TV sets, purchase price of the same is Rs.15000 as per the terms of sales. They are to be delivered and installed at customers place free of cost. X ltd has hired Y co for the purpose and being paid Rs.1000 per set for delivery and installation.At year ended on 31.3.2002, 10 sets were in stock. The market price of TV is Rs 15,750. what is the value of closing stock as per AS2? please help to solve this conceptually.
04 February 2010
Inventories are valued cost or net realisable which ever is lower
In you query - you are mentioned about sale price - this is not affect the value of stock
you can take cost price Rs.15000 or if you can calculate the net realiseable value and value the lower of those
In you query - you are mentioned about sale price - this is not affect the value of stock
you can take cost price Rs.15000 or if you can calculate the net realiseable value and value the lower of those
05 February 2010
Thank you for replying Sir. But the answer given to this question in the material is Rs.1,47,500. But the solution not given. Can you please tell me how?
05 February 2010
In my view
net realizable value means sales value less the cost of making such sales
So in your problem Sale value Rs.15750 less cost of making such sales Rs.1000 so net realisable value one set Rs.14750
as per AS -2 value of inventory is cost or net realisable value which ever is less so
Cost Rs.15000
Realisable value Rs.14750
So low value Rs.14750 x 10= Ra.147500
I hope this is correct
net realizable value means sales value less the cost of making such sales
So in your problem Sale value Rs.15750 less cost of making such sales Rs.1000 so net realisable value one set Rs.14750
as per AS -2 value of inventory is cost or net realisable value which ever is less so
Cost Rs.15000
Realisable value Rs.14750
So low value Rs.14750 x 10= Ra.147500
I hope this is correct
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Rent lease agreement
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Relief u/s Section 89
- TDS Challan Code
- Lease agreement and tax on sale
- CCFS 2026 Schemed
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
