Question

a firm consists of two partners mr.anuj and mr.salman . Mr.anuj is of the view that closing stock should be recorded at 8000rs
which is its cost whereas mr.salman want to record it at 10000rs i.e. its market value.As a finance manager what would you suggest them and why?

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Answer 1

Answer:

closing stock is valued at cost price or market price whichever is less according to prudence principle so mr Anuj is right