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Lecture 62

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5 views

Lecture 62

Uploaded by

hiddenseceret7
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Types of questions that can be asked in IAS-02

1. Value of stock
(Lower of cost/NRV)
Further,
1) If data of perpetual system is given
 Cost is found using detailed inventory card.
 Then NRV is calculated and compared.
2) If data of periodic system is given
 Cost is calculated by shortcut.
 Then NRV is calculated and compared.

Start from 17:00

Question

Solution
We will solve this question by AVCO method.

 In AVCO method we do not need individual rate.


 As date wise record of sale is not given, which means it is periodic method.
 For cost of closing stock, first of all we need quantity of closing stock.
 We can units of closing stock as (opening + Purchase = Available for sale – sold = closing)
o We will find closing stock of all items like this and then find value of closing stock for all
products.
 Just like asset, all expenses incurred to bring stock to us will be added in the cost of inventory.
o Import duty is also an expense to bring inventory to us, therefore it will also be added in
cost.
 So, we will add non-refundable cost duty.

 Invoice value means the money paid to the supplier for it.
 Duty is always not refundable but in question it gave us both. So, we will follow question.
i. It is saying that transporting charges up to the company (us).
 100 per unit means (360 x 100) total.
 It is carriage inward
ii. Carriage outward. It is selling expense. It is used in calculation of NRV.
iii.

In questions where we have %age of good and bad items, making trees is helpful.

 We cannot have units in points. E.g. if we have figure of 5.4, we will make it 5 and of we have
5.5, we can make it 6.
 As we can also use past data to calculate NRV. So, we will take normal selling price of past.
o
Video 88 a 17:00

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