Valuation of closing stock
This query is : Resolved
19 August 2011
SIR, NOW DAYS DEPARTMENT IN THE CASES OF GOLD AND SILVER MERCHANT ARE NOT ACCEPTING AVERAGE COST METHOD PRINCIPLE FOLLOWED BY THE CLIENTS DUE TO INCREASE IN RATES THEY WANT TO VALUE THE SAME AT PRICE AS ON 31ST OF MARCH WHICH IS NOT RESONABLE CAN ANY ONE GUIDE ME WHICH IS THE PROPER METHOD AND IF SUCH METHOD FOLLOWED IS IT WRONG AND IN WHICH MANNER AS THE CLOSING WEIGHT IS VALUED AT WEIGHTED COST METHOD , THIS IS GOING TO BE BIG PROBLEM TO ALL JEWELLERS DUE TO RISE IN PRICES
19 August 2011
It can be valued as per LIFO method. but as per AS-2 is not recommending the LIFO. but valuation is based on the accounting policy as per company. the same will be mentioned in Notes to accounts
19 August 2011
Accounting policy of the company should be according to Accounting Standards. so LIFO method can't use.
19 August 2011
as per AS 2
cost price or market prise on the last day of closing books of accounts. WHICHEVER IS LOWER will be taken into consideration for closing stock. I HOPE U UNDERSTAND.....
cost price or market prise on the last day of closing books of accounts. WHICHEVER IS LOWER will be taken into consideration for closing stock. I HOPE U UNDERSTAND.....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- LIC maturity claim whether taxable
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Cash balance limit and property purchases limit
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
