1.

What Is The Valuation Of Unsold Consignment?

Answer»

VALUATION of unsold stock will be done LIKE a closing stock of a Trading concern and should be valued at the cost or the MARKET price whichever is low.

This stock will be valued at:

  • Proportionate cost price and
  • Proportionate direct expenses.

Here, proportionate direct expenses mean — all expenses INCURRED by the consignor and the expenses of CONSIGNEE, which are incurred by him till the goods reach the warehouse.

Valuation of unsold stock will be done like a closing stock of a Trading concern and should be valued at the cost or the market price whichever is low.

This stock will be valued at:

Here, proportionate direct expenses mean — all expenses incurred by the consignor and the expenses of consignee, which are incurred by him till the goods reach the warehouse.


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