14 April 2010
i have purchase one machinery in 25th march and book under purchase account. at 31st march the machine laying at stores and a part of closing stock of stock of spare .
machinery shown in closing stock or capital wip ? which is right
it appears that is this machinery is capital item and not revenue stores.
it should be classified as Capital inventory and should form part of Capital work in progress. In the capital work in progress schedule Capital inventory should be shown separately.
CAclubindia
