Question
A manufacturing entity has a stock of finished goods
with a total Historical Cost of ₹12,00,000. Due to a market slowdown in early 2026, the estimated selling price of this stock is ₹11,50,000. The entity expects to incur a 5% brokerage commission on the sale and ₹20,000 in specialized packaging costs to ship the goods to the buyer. What should be the value of inventory in the Balance Sheet as per Ind AS 2?Solution
As per Accounting standards, inventory must be valued at the Lower of Cost or Net Realizable Value (NRV). Cost: Given as ₹12,00,000. Calculating NRV: · Estimated Selling Price: ₹11,50,000 o Less: Estimated costs necessary to make the sale: 5% of 11,50,000 = ₹57,500 o Less: Estimated costs of completion (Packaging): ₹20,000 Thus, NRV = 11,50,000 - 57,500 −20,000 = 𝟏𝟎 , 𝟕𝟐 , 𝟓𝟎𝟎 . Since NRV (₹10,72,500) is lower than Cost (₹12,00,000), the inventory is recorded at ₹10,72,500.
A tort is the outcome of the breach of such ______ which are imposed by law.
The Indian Succession Act, 1925, applies to:
A police officer concludes the investigation into a cognizable crime and prepares a detailed report with all the evidence collected. Under which sectio...
In States having a Legislative Council, the total number of members shall not exceed_______
The Pension Fund Regulatory and Development Authority Act, 2013 came into force on ____________
Under the Hindu Succession Act, 1956, if a Hindu male dies intestate (without a will), which of the following will inherit first?
According to ___________ of interpretation, the meaning of a word is to be judged by the company it keeps.
As per section 21 of the Negotiable Instrument Act “at sight” means___________
If the suit was not instituted in proper court_________________
According to Sales of Goods Act, 1930 which of the following accurately describes the legal effect of a person, who has sold goods but continues to pos...
