FOR EXAMPLE:
I HAVE A JEWELLERY SHOP,
I HAVING TOTAL 100 CARATS LOOSE DIAMONDS STOCKS
IN THIS 100 CARATS HERE 25 CARATS LOOSE DIAMONDS ARE FAMILIES LOOSE DIAMONDS
MY ACTUAL STOCK IS 75 CARATS
AFTER ONE YEAR MY LOOSE DIAMONDS STOCK IS 50 CARATS
NOW I ISSUE FAMILY STOCK OF 25 CARATS THEN IN MY AT THE END OF THE YEAR IN MY AUDIT REPORT THE ENTRY OF FAMILIES LOOSE DIAMONDS ENTERED OR NOT IF YES THEN GIVE REASON, & IF NO THEN GIVE REASONS.
The business diamond and family diamond should be ideally separated. Whatever sales you have made it has to be made from the business diamond and not family diamond. The closing stock of next year has to be calculated accordingly
CAclubindia
