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Conversion of personal assets into stock in trade

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1359 Points Posted on 14 April 2023
if a proprietor of jewellery shop convert his personally held asset (gold) into stock in trade at which cost it is to be recorded in books of firm - the price at which the proprietor purchase it or at the fair market rate??
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On 14 April 2023 at 00:23 Report
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Profession Business
28207 Points Posted on 14 April 2023
At cost or net realisable value which is lower.
44 Reply
On 14 April 2023 at 14:46
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Finance
4566 Points Posted on 14 April 2023

Stock in trade means the stock which is purchased in the business for resale purposes. Inventory valuations for it. 

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On 14 April 2023 at 20:38
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1359 Points Posted on 17 April 2023
Sir if a owner of jewelery shop. introduce his personal gold of rs 10 lac ( purchase price) and ( fair market price is 50 lac) in his sole proprietor firm as a stock in trade at which value it is recorded?
thanks in advance
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On 17 April 2023 at 00:13
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Finance
4566 Points Posted on 17 April 2023

10 lacs. The inventory valuations are same for sole proprietorship.

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On 17 April 2023 at 05:00


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