14 September 2017
What does stock in trade means in accounting terms. while filling 3CD, in clause 40 it ask for stock in trade..so i m confused that whether it would be closing stock or avg stock..??
14 September 2017
thank u sir, but when i asked this to my principal he said that in general terms stock in trade means the stock which we use in normal course of business. and there are many methods to calculate stock. the best method is avg method. so we use avg stock in clause 40 of form 3CD. so whether this explanation is correct..??
14 September 2017
Stock in trade refers to the goods kept in hand by a business for the purposes of its trade. there are various method for valuing the same. FIFO, LIFO, Weighted Average etc. Once can choose any of it depending on the size and nature of Business.. and method should be consistently followed. if there is any deviation from last FY, the same should be disclosed in 3CD. Would suggest you to read ICDS II..
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