Stock valuation

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Ashutosh Kumar Jha (Querist)
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07 August 2013 Dear Sir,

In Income Tax Act, stock is to be valued at cost price or market value whichever is less but in "Tally" stock is valued at average cost by default, so how can I value the closing stock in "Tally" as per the IT Act-1961.Please help me.

With Thanks & Regards
Ashutosh Kumar Jha
9534140352

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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08 August 2013 Press F7 to convert it into FIFO.

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Ashutosh Kumar Jha

Ashutosh Kumar Jha (Querist)
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08 August 2013 First of all thanks for your reply sir.

Now, if market price get reduced below the cost then how can we valued the closing stock in tally and further after changing the valuation method into FIFO when I close the tally then on reopening the value get remain unchanged i.e. by default .

with Thanks & Regards
Ashutosh Kumar Jha
9534140352

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 August 2013 In that case;

at the CLOSING PRICE

you have to pass

STOCK JOURNAL

to bring down the cost

to carry it for next year..

Ashutosh Kumar Jha

Ashutosh Kumar Jha (Querist)
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09 August 2013 Thank you Sir for your valuable reply.

Further if cost price is Rs. 100000/- and Market price is Rs. 95000/-, then in this case please show me the stock journal entry to be passed for this transaction..

With Thanks & Regards
Ashutosh Kr Jha

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