stock is valued at which price
Answers
Answer:
Stock is valued at market price as Closing stock to be valued at cost or market price so whichever lower that includes rule based on theory anticipated profit is not brought with the account before actual realization.
ANSWER:
As per AS-2, Valuation of inventories prescribed the accounting treatment for inventories and sets the guidance to determine the value at which the inventories are carried in the financial statement.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs.
The cost of inventories should comprise all costs of purchase, Costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
As per AS-2, "Inventories should be valued at the lower of cost and net realisable value."