Disclosure of Stock of Principal Supplier (RM) in Books of A/c ended on Mar-2021

[NISHANT SHAH]

Dear All Experts,

How to show stock (RM) lying of Principal Supplier for purpose of Job work given to Job worker in the books of Job Worker as on 31.03.2021. Job worker has to exclude such stock to arrive at his final profit for year ending as on 31.03.2021.

Please suggest how to report same in accounts?

AI Summary

Disclosure of principal supplier stock: job worker must exclude such stock from closing stock and profit and record separate disclosure. The job worker must show supplier-owned raw material stock separately in his books, exclude that stock from closing stock and from the computation of final profit, and include an appropriate disclosure or note stating the materials are held on behalf of the principal supplier as at year end.