If a trust receives donation to purchase books & say Rs.50/- is the donation amount for 1 book and the trust spends Rs.100/- for each book, then while valuing inventory of books, what should be the value of each book?
Should it be Rs.100/- per book or Rs.50/- per book?
23 May 2013
I think stock value should remain a the market price or cost whichever is less (in this case : Rs 100/-). It should not have any connection with donation amount recieved, because the trust is still speding the balance amount from its own sources.
CAclubindia
