Mani (MD) (39 Points)
25 January 2014How to arrive at closing stock???
I have opening stock of 72 lacs (average costing without tax) and purchase of 49 lacs (with tax) and i did sales of 101 lacs (without tax). What is my closing stock then????
Should i add tax in sales and opening stock?
Where all should tax be included and where all should tax NOT be included?
Right now i calculated => 72(no tax)+49(with tax)-101(no tax) = 20 lacs. IS this correct?
CA Gyati Gupta
(In Practice)
(8427 Points)
Replied 25 January 2014
mam,
if you are getting input credit on goods ,then u should not include tax in valuing stock.
and if u are not getting input credit, then you should add taxes to the cost of goods
so add and subtract accordingly, and then calculate your closing stock
CAclubindia
