Closing stock valuation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2014 sir ,

Am usign tally software.

this month
we have opening stock+purchase+ direct exp and there is no sales. But management is eating my brain that the OS+Pur is not equal to CS. Pls help me to give them a good explenation.

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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14 August 2014 Dear Friend,

Management's contention is correct.

Opening Stock + Purchase - Sales = Closing Stock.

Unless you add the direct expense cost in the cost of unit in purchase it will not affect value of purchase and accordingly it will not affect value of closing stock.