Closing stock

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2011 Opening Stock - Nil

Purchases
a. Shell white granite - 306 sft. @ 86/- per sft.
b. Shell white granite - 252 sft. @ 89/- per sft.
c. Red granite - 86 sft. @ 175/- per sft.

Sales
a. Shell white granite - 336 sft. @ 93/- per sft.
b. Red Granite - 94 sft. @ 190/- per sft.

What is the closing stock?

Please answer the closing stock step by step in detail.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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20 August 2011 In the products a & c, how can you sell the quantity more than your purchases??

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2011 Modified. Please answer.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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21 August 2011 There is still the same problem.

How can you purchase something 252 ft and sell 336 ft?

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2011 please check a and b.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 August 2011 Stock A is showing more sale comparing purchase

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2011 I have mentioned total sales of shell white.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 August 2011 a.Shell white granite 222 sft @ rate of Rs.86 total value Rs.19092

Red granite negative stock

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2011 What method has been implemented? What is the common used method for arriving the closing stock? LIFO/FIFO or Average method?

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Well in your case Weighted average method is only applicable
as dates have not been mentioned

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 The weighted averege cost of purchase of 558 sft is Rs 48,744
and weighted avg rate for 1 sft is Rs 48,744 / 558 = Rs 87.35

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Since the closing stock if 558 sft - 336 sft i.e. 222 sft
Teh clsoing stock as per weighted cost wud b
222*87.35 = Rs 19,392

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 The information of red granite is wrong but since whole quantity has been sold and there is physical inventory the closing stock should be Nil, it cannot be negative at any cost

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Also I want to say to Mr. that closing stock is required to be taken as per physical count not as per bbok balance to be correct in order and it cannot be negative

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Generally weighted average cost methos is adopted in the firms, also the stock can be valued as per FIFO methos

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 if the FIFO method have been considered the closing stock to calculated in the following manner assuming the a as first purchase
Teh clsoing stock wud be 222 sft Rs 89 = Rs 19758

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 I would like to mention you that as par the AS-2 only the valucation is permissible as per FIFO and weighted average method, LIFO is not allowed

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Querist : Anonymous

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10 October 2011 resolved. Thank you experts.

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2011 resolved. thank you experts

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2011 resolved

Querist : Anonymous

Querist : Anonymous (Querist)