12 February 2010
If the limit is small one; take the simple method of valuation according to your need. Because these may be accepted by the bank and thus you can avoid yourself to make tricky calculations if process/goods are numerous and typical.
But; if figures are running into certain lacs or crores; then definitely you have to focus on a very particular method.
Weighted method is one of the best method. No adjustments would be needed at the time of finalisation of books if you adopt this method.
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