Regarding income tax

[Rajeev Khulbe]

Good evening sir

Very urgent query I an hare again to get your valuable answer.We have purchased a proprietor firm 1.30 Cr with all assets & liability and we carry forward all assets & liability in my books but we don't understand how show the stock in books and we have 11 cr stock now my query is if I show stock through purchase so came loss in my books pl reply which is the way to book stock and don't book loss

AI Summary

Accounting treatment of stock on purchase of a proprietorship: avoid artificial loss while preserving correct tax reporting. The purchaser recorded all assets and liabilities of a proprietorship taken over and seeks guidance on valuation and accounting treatment of acquired stock to avoid recognising an artificial accounting loss if the inventory is booked through purchases, while preserving correct carryforward of assets and liabilities for tax reporting.