Stock transfers | inventory valuation

Ashwin (Student CA CPT )     21 May 2018

Student CA CPT  
 21 points

| My Other Post

Dear Experts

I have Query Regarding the Valuation of Inventory

The company has opted for the weighted average method for ascertainment of inventory cost. 

The company has 3 branches and the valuation of inventory is done branch wise.

My Query is how the branch transfer will be accounted in the books, Since the method is weighted average the rate of inventory changes as per transaction, and rate of moving average in one branch will be different from other branches


Thanks and Regards


Dhaval (Senior Manager - Finance & Accounts)     18 July 2019

Senior Manager - Finance & Accounts 
 22 points

View Profile | My Other Post

Dear Aswin

In Branch Books you need to consider Inventory Valuation based @ Stock Transfer Price (Inward).

Because it is cost for that branch (purchase cost).

At gross level it will be nullified.



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