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Stock statement

pavel (student) (461 Points)

01 September 2018

Can any one say me why stock statement is prepared and how it is prepared whats the need of stock statement.

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8 Replies

CA Nikita Motwani (Chartered Accountant) (912 Points)
Replied 01 September 2018

generally when cash credit facility is availed from the bank against stock then the bank asks for the stock statement generally at the end of every month

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pavel (student) (461 Points)
Replied 02 September 2018

but why against stock bank gives credit and whats there to be reported in stock statement

Shagufta shaikh (Article ) (32 Points)
Replied 02 September 2018

Coz stock is ur asset.. Bank will hypothecate ur asset (stock) and after deducting appropriate margin will provide u CC limit..
And so stock statement certificate BY CA is required so as to prove that stock is actually lying at ur godown..

2 Like

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 02 September 2018

Stock statement is required by bank because drawing power is calculated on the basis of value of stock. Since stock changing everyday therefore it is required by bank on monthly basis. You can obtain format from bank to provide details of stock. It contains particulars of stock its quantity and value. In case of small cc accounts it is required by bank on quarterly basis.

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pavel (student) (461 Points)
Replied 02 September 2018

thank u alll for all ur efforts and reply....

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pavel (student) (461 Points)
Replied 08 April 2019

Alexandara thank u soo much that u what actually i was in search for and hunger to understand it...All thanks to Prakash & Shagufta for their effort and time for replying this question

pavel (student) (461 Points)
Replied 10 April 2019

sory couldn't mention nikita thank you soo much for your reply and sparing the time

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ElsaD (Admin) (30 Points)
Replied 13 April 2019

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