negative value of stock

CA. Shikha (Chartered Accountant) (4143 Points)

18 June 2008  

How would I value the following stock on 31st March?

Metallic Powder costing Rs. 1 lakh (bought 3 years back) which has Nil Market value today. And to remove that stock from the factory an additional cost of Rs. 10,000/- has to be incurred.

Also what accounting entry has to be passed when that stock would actually be removed??