State how you will treat the following transaction while preparing the final accounts of a company for the year ending 31st March, 2020. While preparing the accounts of the previous year closing stock was taken at market
CS Executive · Company Accounts & Auditing Practices · PYQS · June 2021
State how you will treat the following transaction while preparing the final accounts of a company for the year ending 31st March, 2020. While preparing the accounts of the previous year closing stock was taken at market price of ₹ 4,55,000 instead of cost price of ₹4,80,000.
Answer & Explanation:
No treatment is required to be made. The method of valuation of stock is to be disclosed in the Balance Sheet.
Topics: Accounting Principles
Related Questions in this Topic
- State how you will treat the following transaction while preparing the final accounts of a company for the year ending 3...
- State how you will treat the following transaction while preparing the final accounts of a company for the year ending 3...
- Write briefly about 'communications with those charged with governance'-(SA-260).
- What are the objectives of review of "Employee Relation" and draw an internal control questionnaire on it?
- What are the Powers or Rights of Auditors prescribed under Section 143(1) of Companies Act 2013?