Regarding Accounts

[Rajeev Khulbe]

Good morning 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

[DR.MARIAPPAN GOVINDARAJAN]

Please contact the consultant in this regard.

AI Summary

Accounting treatment for inventory on business transfer: whether to record acquired stock as purchase or carry forward to avoid loss. Accounting treatment for inventory on a business purchase: the taxpayer acquired a proprietorship with assets and liabilities and asks whether to record acquired inventory as purchases (which would create a loss) or to carry forward the stock value to avoid recognising that loss; the record contains no substantive advisory response.