Inventory by Artist

[Vikas Aggarwal]

Dear Sir \ Madam,

It is requested you to please give your valuable suggestion of following issues:-

1. An artist sale his painting work to art gallery on consignment basis, whether he is liable to maintain record for the same (Means maintain stock is mandatory).

If yes what is the valuation of stocks.

2. Income on sale of its art works by artist is professional income or business income, or they can liable to maintain stocks.

3. The artist is follow receipt basis of accounting, treat as sale when amount realized from  art gallery in this case how they can maintain its stock, is only consignment note is sufficient record or not.

 

Regards,

CA Vikas aggarwal

 

AI Summary

Artist's Accounting Duties: Stock Records, Valuation, and Income Classification for Consignment Sales to Galleries An individual inquires about the accounting obligations for an artist selling paintings on consignment to an art gallery. The questions focus on whether the artist must maintain stock records, how to value these stocks, and if the income should be classified as professional or business income. Additionally, the inquiry seeks guidance on maintaining stock records when using receipt-based accounting, questioning if a consignment note suffices as a record. A respondent asks if the issue has been clarified, indicating ongoing discussion.