Question ID :
44517
Valuation of Closing Stock in case of Jewellery Business
This is wrt to valuation of Closing Stock in case of gold ornaments and silver ornaments. Can I value at market price? or it at cost? In general, how the industry value it's closing stock?
Posted by
ANKIT JAIN
on
Jul 23, 2023
Filed Under
Profits & Gains of Business & Profession
As per income tax closing stock should be valued as Cost or NRV, whichever is lower. Hence, it should be valued accordingly. Otherwise you can continue in cost basis for books purposes for SME. In large Corporates, you have to follow IndAS
Posted by
SURAJ KUMAR CHOUDHARY on
Jul 23, 2023
Answer ID :
85111
Closing stock should be valued at cost or Net realizable value whichever is less. For determination of cost, average cost can be considered as cost.
Posted by
CA. chunauti dholakia on
Jul 26, 2023