Mani (MD) (39 Points)
10 January 2014How to arrive at closing stock???
I have opening stock of 72 lacs (average costing without tax) and purchase of 49 lacs (with tax) and i did sales of
101 lacs (without tax). What is my closing stock then????
Should i add tax in sales and opening stock?
Where all should tax be included and where all should tax NOT be included?
Right now i calculated => 72(no tax)+49(with tax)-101(no tax) = 20 lacs. IS this correct?
JAINENDRA JAIN
(ACS/CA)
(1668 Points)
Replied 10 January 2014
IF YOU CAN TAKE CREDIT OF TAX PAID ON PURCHASES YOU CANNOT INCLUDE IT IN VALUATION OF STOCK AS FORMING PART OF COST OTHERWISE YOU CAN DO SO.
ASSUMING YOU CAN TAKE CREDIT OF TAX YOU HAVE TO VALUE YOUR PURCHASES WITHOUT TAX AND THAN VALUE YOUR CLOSING STOCK AS PER AS-2.
Mani
(MD)
(39 Points)
Replied 10 January 2014
Thank you for your reply.
So should my calculation be 72(no tax) + 43(no tax) - 101 (no tax) = 14 ????
CAclubindia
