I have started a goat farming business and i have purchased 60 goat from Rajisthan in which 10 to 15 are kids. Now my question is, should the goat have treated as Fixed Asset or Stock in trade. And how i will value the closing stock & record sales and purchase entry in my book of accounts. Please answer with Journal Entry.
It depends on what you are going to do with your goat. If they are for milking purpose only, and if you want to sell their by-product only, then they can be considered as Fixed Assets. But if you will also sell them as meat, then treat them as stock-in-trade.
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