determination of scrap

scrap

Definition

Waste that either has no economic value or only the value of its basic material content recoverable through recycling.

well that is ur closing stock only since its not a waste. A scrap is a wastage in production which can b recycled.

well the defibnition says scrap is the one which has no realisable value.so going by the definition and take into consideration the scenario 5 % material if is of no use than the same should be valued as a scrap or if the same can be used in the production of the goods than the same should be considered as a raw material and will come under the scope of closing stock