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Urgent - query in revised schedule vi of companies act

J@$preet (Article CA-Final) (149 Points)

27 August 2011

I want to know that how the presentation of Closing stock should be made in the revised schedule of Company's act,1956? Should it be shown in "negative" figure on the expenditure side under the head "Changes in inventories of finished goods, wip, stock in trade"?

Also there is no separate head of preliminary exp. in the revised schedule, so should it be disclosed under the head "Other Current Assets"?

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2 Replies

Amit Gupta (Loosening Myself) (1508 Points)
Replied 27 August 2011

Closing stock can be shown under Current Assets and Since preliminary expense needs to be written off as per Para 56 of AS 26, there doesnt exists any such defererd expenditure and hence no head in Schedule VI of companies act

J@$preet (Article CA-Final) (149 Points)
Replied 27 August 2011

thanks amit but my query is about the disclosure of closing stock in P& L A/c of the revised schedule., should it be shown as a negative amount on the expenditure side?

and where to show the prel. exp. to the extent not written off during the year??????