Trading of shares, valuation of closing stock


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When a client trades shares, the correct valuation for closing stock is crucial. The accepted accounting principle is to value closing stock at the lower of its market price or its original cost. This ensures a prudent and accurate reflection of the stock's value on the balance sheet.

24 August 2021 My client trades in shares. what should be taken as value of closing stock. Market value or Lower of market price/cost?

24 August 2021 Lower of market price/cost is the right one.

25 August 2021 Thank you so much Sir, for your prompt reply.


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