30 December 2009
yes, if you have stock A/c at the end of the f.y then it will be in your P/L A/c in Income side.Stock A/c is also sharing part of the Profit.
30 December 2009
Stock is declared only in the case of surveys where the prop. surrender stock etc. It is income of the firm or prop. and also an addition to the capital. so debit stock account and credit capital account. profit on sale of such stock will be taxable again as a normal profit as he regularly earning in his business.
05 January 2010
Its getting crazy out here......... Godness gracious. A simple issue is blown out of context. With due respects to all in my opinion only CA. Tilak Raj has got the correct answer. Entry Should be Stock A/c and credit Capital A/c. That is the only solution. At theend of the year closing stock will automaticaly show increased value after taking into consideration the stock declared. Credit effect has to be given to Capital A/c. only. How on earth can we give effect to Stock a/c. dr and cr P/L?????