Sir,
I need guidance to account for depreciation for closing stock.
On 01/01/2012 1000 units of ITEM A was purchased @ 250 each = 250,000
On 31/12/2014 Closing Stock of ITEM A is 700 units & the net realisable value is @ 100 each = 70000
Cost of 700 units @ 250 = 175.000
Realisable Value of 700 units @ 100 = 70,000
Depreciation = 700*150 = 105,00
I want ot know the entry for depreciation.
how should I reduce the value of closing stock in Balance Sheet?
Please give guidance.
Thanks
I need guidance to account for depreciation for closing stock.
On 01/01/2012 1000 units of ITEM A was purchased @ 250 each = 250,000
On 31/12/2014 Closing Stock of ITEM A is 700 units & the net realisable value is @ 100 each = 70000
Cost of 700 units @ 250 = 175.000
Realisable Value of 700 units @ 100 = 70,000
Depreciation = 700*150 = 105,00
I want ot know the entry for depreciation.
how should I reduce the value of closing stock in Balance Sheet?
Please give guidance.
Thanks