We Have accounting software Tally prime for day-to-day accounting. While we are going to opt for Inventory it registered entries stock-wise. My confusion is that when we are entering entry of sale, the sale price is hitting in closing stock valuation. For example, we purchased 10 Pen @ Rs. 20 total purchase value is Rs.200, the total value of the pen in stock is (Op stock value Rs. 500+ Purchase Rs. 200) Total Rs. 700. Now when we are hitting sale of 10 pens @ sale value Rs.so my closing stock reduces by 300. So the valuation of the Closing stock is (Rs. 700-300) Rs. 400. Which is not correct. Closing stock value must be cost or NRV whichever is less.
So how we can do the correct entries or do we need to pass JV for the valuation of stock on the Purchase price or NRV whichever is less?
CAclubindia
