Closing stock

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jigarbharatgogri (Querist)
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20 August 2013 our company use tally erp we are maintain stock we are normally pass entry purchase and sales with respected amount

at the time of finalisation the question arise it valuation of stock . the as 2 ACCOUNTING STANDERD COST OR MARKET VALUE WHICHEVER LESS .. hOW TO DETERMINE MARKET VALUE.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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20 August 2013 Market value means the value for which the stock shall be realised as on the valuation date in the market.

For example assuming you purchased one item for Rs. 100 and due to the many reasons at present in the market the value is only Rs. 90 for sold so then the Rs. 90 is the market value.

In one word we can say Market value means the realisable value in the market, it is easily find out by the business man.

OM SAI SRI SAI JAI JAI SAI

Ganeshbabu K

Ganeshbabu K (Expert)
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20 August 2013 Generally Auditors may ask to value Non-moving stock/defective stock if any to be valued at net realisable value

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 August 2013 Market value means the value of goods it would fetch in the open market or current price prevailing in the market on the day of valuation.

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