Valuation of op stock

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2011 case:-
Mr.A has estimate the stock valuation.That amt is recorded in tally by entering in value.He maintained proper records of quntity in no. .This is in prictice last 5 years.
But now Mr.A wants to exact valuation of inventory in no. as well as stock.For this finacial year they start to record purchase update by entering in updated software with qty detail & value?

my query:-
how to bring opening stock valuation with qty & value?
how practically it implemented?
pl guidence in detail?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 December 2011 In this case you will have to carry out one time physical verification of stock. You will have to physically count all the stock items and update the same in Tally.

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2011 PLEASE CAN U GUILE ON STOCH VALUATION PROGRAMME PROCEDURE?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 December 2011 You will have to physically count/weigh each and every stock item.

You will get the quantity of each stock item.

Ascertain the last purchase price of each and every item and you will arive at the value of stock.

If this value differs from the opening value, adjust the difference in some items.

Mahesh Paryani

Mahesh Paryani (Expert)
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30 December 2011 Dear Sir.

Valuation depends on many factors.

1) Is the valuation done on FIFO, LIFO or weighted average basis.

2)Whether you consider overhead valuation.

3)How many different kind of stocks are present.

Answer these questions then only I will be able to guide you

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2011 1.on fifo
2.yes
3.different kinds of what?

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2011 it is slow moving
moderate moving
fast moving items of stock involved.