How does one value the closing stock in a no sale situation.
Eg. Opening stock = 100Gms gold @ Rs.2500/gm
Purchases = 100Gms gold @ Rs.3000/gm OR the other way round.
Sales = 0
Closing Stock Valuation?? Is there a profit or loss earned??
PLEASE HELP!
Opening stock 100 gms @ 2500/gm Purchase 100 gms @ 3000/gm Closing stock will be 200 gms @ 2750/gms by average method and in such situation there will be no profit no loss situation. Where else if there is any other expenses in relation to purchases the same will reflect into loss
Saini Pati Shah & Co LLP, Chartered Accountants
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