Easy Office
LCI Learning

Valuation of waste / scrap in closing stock.

This query is : Resolved 

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

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

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries