Treatment of unused stationery stock at year end

Generally Stationery items are debited to Profit and Loss Account as they are treated as expense.

But if the stationery is the main item of trading, then it shall be shown as Inventory in the Revised Schedule VI Balance Sheet at cost or selling price whichever is lower.

Regards,

Devendra Kulkarni

here stationary stock is not for trading but can say consumables. As per revised schedule VI consumables shell be shown as other assets in balance sheet.

suppose if a person purchase stationary stock like broacher letter pad visiting cards and like stationery item in bulk like for 300000 lakhs however actually used is just for Rs 70000 in the year of operation, then should we provide for 230000 as other assets and not as an expense        

You can show them as Consumables in the Balance Sheet and transfer it to Profit and Loss A/c as and when the Stationery items are used.

Regards,

Devendra Kulkarni

is there any legal clarification regarding this ? in schedule vi or AS or case law etc

You can show this expenses in head Defered Misc Expenses accouint under Asset 

Means If you have purchased stationery of rs. 3 lac in a year and the stationey will be used with in next 5 year period, the expenses should be shown as Defered expenses in Asset side of Balance sheet. 

At the time of purchase

Printing & Stationery Expenses A/c Dr.

To Bank/ Cash/ Vendor

as on 31st March

Misc Expenses (Defered Expenses) A/c dr

   To  Printing & Stationery 

And in each following year:

Printing & Stationery  (from Used value of stationery) Dr.

   To Misc Expenses (Defered Expenses) A/c 

Rajesh

As per your case that is you have purchase the Stationary of 3 lacs and consume only  rs 40000 than balancing figure remain in your hand

this is depends on the discrision of management

that if you will  treat it revenue expenditure then   it charge in Profit and Loss than your profit wil decrease and

if you treat it  Assest then the value of consumed will charge in Profit and Loss Account and balancing figure will shown in baance sheet as assests and this method will not effect your profit and loss account   

how would scrap sale be accounted?