Regards closing stock valuation

This query is : Resolved

devendharreddy (Querist)
Follow

16 June 2015 somebody is arguing that closing stock of poultry business does not include laying birds, includes only non laying birds am much confused as to why closing stock does not includes laying birds please suggest me whether closing stock includes all birds whether laying or non laying

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
Follow

16 June 2015 Stock is of traded items held for sale and fixed assets are those which are not for sale but to be used in business and held for long period of time. Non laying birds are for sale and hence goods, therefore stock-in-trade. Laying birds are not for sale because their eggs are sold and as long as they lay eggs they will not be sold. Hence, laying birds are not stock but productive assets to be held for a long period of time.

Message likes : 1 times

devendharreddy

devendharreddy (Querist)
Follow

17 June 2015 sir.. so can i show those laying birds in balance sheet i need to show them in balance sheet right?

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
Follow

17 June 2015 Both in balance sheet: Laying birds fixed asset. Non-laying will be stock-in-trade.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now