Different type accounting

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Syed Jamal Haider Zaidi (Querist)
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08 April 2014 Dear friends, Its pleasant moment for me to lay my question among an educated body,

Question:-

XYZ limited is in woolen business, it have approx 1000, sheeps both male and female, company get the sheep hairs from its own live stock as raw material and than convert the same in finished product as “sweater” and other woolen clothes.
Company do supply to wholesalers and dealers via its own transport have some land conveyance such as trucks, lorries and other live stocks as MERE, HORSE, ELEPHANT, and CAMEL to supply the final products at hill stations and in tribe areas where the land conveyance not available.

NOW question arise…..
1 How we can treat the sheeps (male and female) and their kids in books of accounts, are they as stock or assets for company ?
2 What is the accounting treatment for the transportation mode as horse, mere, elephant, camel and their kids, are they fixed assets or stocks (as capital item or revenue items)
3 how we will treat the milk and other byproducts dung etc of all the live stock as sheeps, mere, elephant, horse, and camel

Please help me to get the suitable answer in the light of accounting standards, company or other laws.
If you need further clarification than please let me know

Thanks & Regards

Syed Jamal Haider Zaidi

Rupesh Jain

Rupesh Jain (Expert)
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08 April 2014 r/sir
you can treat the all the animal as live stock not the fixed assets nor the stock
but this is producing some thing or use for active business part .

main object of business set in the mind after that you can make easily that.

if your main business is woolen and woolen cloth
then woolen and woolen clothe is your main sale parts and its related exp are direct exp.
like animal insurance, fooding, etc.
and weaving exp. of wool and stitching of cloth are also direct exp part.

in both income tax and company act for
animals are not treat the machinery for depreciation claim and not treat the stock.

you take value at the end of the year.
at cost or releasable value which is less.

other saleable item like dung, milk etc can take indirect income and also exp. related this is also can take indirect exp.

during the year loss of animal or dead animal can take as "Loss of live stock during the year" .

Syed Jamal Haider Zaidi

Syed Jamal Haider Zaidi (Querist)
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08 April 2014 Thanks for your rapid answer, now if i spent approx INR 10,00,000 for the purchase of Sheeps and approx INR 15,00,000 for the purchase of Other animals as mere, horse, etc used as conveyance and have market value of INR 1,00,000 their kids assume as self generated .......it means i can't book a single penny in my books of accounts either in assets nor in stocks even really i spent INR 26,00,000 towards animals purchase...

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