joji jose (audit manager) (242 Points)
31 January 2011Dear sir,
one of our client a share trader, transacted 2cr share trading during the year 2009-10. At the year end , while valuing the closing stock, the client produced a closing stock statement of 24 lakhs , but as per accounts the value of closing stock at cost price was28 lakhs . which value to be taken for finalising his accounts. It we depends on valutaion of brocker , they may incurr a loss of 1 lakh. what to do. please guide me in this regard
Nilesh Jain
(Assistant Manager)
(1064 Points)
Replied 31 January 2011
U hav to value the share stock @ cost or arket price whichever is lower..........
Raam Iyer
(Articleship)
(116 Points)
Replied 31 January 2011
for investments it should be shown only at Cost and As-2 ll not apply
| Originally posted by : joji jose | ||
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Dear sir, one of our client a share trader, transacted 2cr share trading during the year 2009-10. At the year end , while valuing the closing stock, the client produced a closing stock statement of 24 lakhs , but as per accounts the value of closing stock at cost price was Rs. 28 lakhs . which value to be taken for finalising his accounts. It we depends on valutaion of brocker , they may incurr a loss of 1 lakh. what to do. please guide me in this regard |
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Nilesh Jain
(Assistant Manager)
(1064 Points)
Replied 31 January 2011
But the current investment are to be valued as per AS-13 which says cost or arket price whichever is lower..........
Vikas Gupta
(CHARTERED ACCOUNTANT)
(16295 Points)
Replied 31 January 2011
No In this case Closing Stock Must Valued at Cost Price...
hakim
(Banker)
(117 Points)
Replied 01 February 2011
It'll depend whether he shows the income as CG or BP.
If he assumes the income as business income, then he can apply AS - 2
if not, AS - 13 apply.
CA Ashok Prasad
(Practitioner)
(133 Points)
Replied 01 February 2011
Note that the cliente is share trader. means when investment is made ie purchase, it is very clear that it is intended to sale. so going by this intention under the provision of AS-13, it should be valued at lower of cost or market value.
hope it serves the purpose.
Indu
(Articled Clerk)
(104 Points)
Replied 01 February 2011
AS per AS-13 Its As Per Market price of that particular Day
CAclubindia
