Valuation of waste / scrap in closing stock.
This query is : Resolved
Anil Kumar
(Querist)
16 April 2019
In our industry we are producing fertilizers and during the process a waste of carbon slurry generated. This waste has some market value but not having any cost of production.
Kindly advice whether the same is to be shown in closing stock of the industry while working out the profitability at the end of financial year. It has small and fluctuating market value only.
Regards
Kindly advice whether the same is to be shown in closing stock of the industry while working out the profitability at the end of financial year. It has small and fluctuating market value only.
Regards
Shashikant Varshney
(Expert)
19 April 2019
You are following the mercantile method, so you need to show the closing stock of the Scrap. It is just like as a byproduct. You need to value it n a reasonable cost by crediting the manufacturing cost.
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
- Query on effect of registration of property
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Visiting card purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Whether output tax is taken credit by purchaser
- Additional trade name
- Equity Share Sale and Purchase
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
