Valuation of stock in trade

Madhusudan Kabra (knowledge seeker) (1779 Points)

16 July 2010  

 

Regarding Stock-in-Trade, Every year Valuation is done at Cost or Market Value which ever is lower. In case where Market Value is lesser then Cost then in same year adjustment entry made and such stock is shown at market value .Now in Next year, Market value of previous year is taken as Cost, instead of Original Cost. IS THIS IS RIGHT PRACTICE ??????????

 

 

Regards

Madhusudan