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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

Answer ID : 85110

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