Production banned by government
This query is : Resolved
Suresh Jain
(Querist)
29 December 2012
Sir,
I am a pharma manufacturer. Suddenly without intimation Central Govt.Banned one product in March 2011 .At that time i am having about 20 lac Mat(Work in progress) 15Lac(Finished) and 15 Lac (Raw).My query is ::-
(1)How the such situation (stocks) reflect in P & Loss a/c for the year 2011-12.
I am a pharma manufacturer. Suddenly without intimation Central Govt.Banned one product in March 2011 .At that time i am having about 20 lac Mat(Work in progress) 15Lac(Finished) and 15 Lac (Raw).My query is ::-
(1)How the such situation (stocks) reflect in P & Loss a/c for the year 2011-12.
CA PARAS BAFNA
(Expert)
29 December 2012
Accounting policy being followed for the valuation of inventory plays a great role here. If valuation of respective inventory items has regularly being done on the basis of Cost or Net Realisable whichever is lower, accordingly, you may state the net realisable value of banned items as NIL.
However, if the inventory items were being shown at Cost, then cost of the inventory item has to be shown.
.
However, if the inventory items were being shown at Cost, then cost of the inventory item has to be shown.
.
Suresh Jain
(Querist)
29 December 2012
SIR,
THANK YOU VERY MUCH.I WILL do accordingly.
regards
Suresh Jain
THANK YOU VERY MUCH.I WILL do accordingly.
regards
Suresh Jain
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
- Gst credit note by supplier
- Movement of goods by packers and movers - type of sale - Reg.
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
