Valuaion of Inventory as per AS-2

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Priyanka Kataria (Delhi) (Querist)
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19 February 2011 A Ltd. is selling refrigerator ,Purchase Price of the refrigerator is Rs. 15000 as per the terns of sales .The refrigerator is to be delivered and installed at customer`s house free of cost.A ltd has Hired Y & CO. for the purpose and being paid Rs 1000 per Refrigerator for delivery and installation.At year ended on 31.3.2010,refrigerator was in stock is 10.The market price of the refrigerator is Rs 15750.calculate the value of closing stock as per AS-2..

CMA.Subhabrata Pramanik

CMA.Subhabrata Pramanik (Expert)
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19 February 2011 Value of closing stock per refrigerator will be Rs.15,000/- because as per AS-2 value of closing stock will be cost or market price whichever is less

Priyanka Kataria (Delhi)

Priyanka Kataria (Delhi) (Querist)
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19 February 2011 thanks sir,
As per AS-2 Inventories are valued at lower of cost and NRV, answer is correct but the problem is that it does not match with my answer.MY answer in book is Rs.147500.so please tell me which one is correct.May it is calculated :
Cost of Refrigerator - 15000*10=150000

Market Price-15750*10= 157500
Less:Delivery and installation 10000
Net Market Price 147500
Now lower is Market price 147500
So pls tell me whether i am correct in calculate of Closing stock as per AS-2
Charges-1000*10

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