METHOD OF ACCOUNTING IN TALLY PRIME

depends on the nature of your income.

If it is commission/fee that you get from client, no need to record inventory.

If you have a relation where risk is transferred to you, you have to account for inventory.

In simple terms if a job worker receives an item on delivery challan for job work, will that item form part of the job worker's closing stock?

No! Your not a principle agent to report inventory when you don’t claim risks or rewards. You have to purchase inventory in order to record it. You can record it personally on a receipt. Inventory has a fair value which is derived from arms length commercial transactions. Since you don’t get any economic benefit from it, take your contract revenue and that’s it

Originally posted by : DHRUV
	In simple terms if a job worker receives an item on delivery challan for job work, will that item form part of the job worker's closing stock?

Will that item form part of the job worker's closing stock?

---> No. it's not stock of job worker. So no need to show the items in your stock and PandL...

(in case you want to maintain that stocks in your end then you can maintain separately. it's can't include in Your accounts)

My answer may differ from everyone, but for the sake of clarity of vision as well as for your reference you should have booked all the jewelry as inventories with no value via receipt note & should make a delivery challan when you do the job, this D C you may attach while making invoice. This is just for not to arise any problem in future also the standard of accounting maintained.

You can book an inventory  in the vouchers only. But adding unwanted things can add up to turnover and other calculations like wc