Live stock addition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 How to make journal entries of Addition of live stock which we recd free of cost( eg. Cow gave birth a Calf, then how to entered this addition in books of accounts and what about their valuation).

Please Help.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 July 2013 there is no valuation method of live stock, you can add as income and debit as asset

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2013 but how we take value of calves for entering in books of accounts and what about the insurance claim if any mishappening occurs

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 July 2013 Then you need to add as live stock with Re.1 value and maintain the list in the books

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2013 but sir after some time say 1 or 2 year,her value is much more than we recorded then it is unreasonable to value them on say 70,000 or plus

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 July 2013 You can value current market value and account now only then increase you can book periodically