Stationery Inventory
The quantity of Stationery Inventory (books and stationery) presented on the balance sheet is contingent upon the distinct approaches to accounting adopted by the individual company.
However, in general, inventory listed as a current asset on the balance sheet. This means that it is an asset that can converted into cash within one year.
The value of the inventory is typically determined by the cost of the goods, plus any associated costs, such as freight and handling.
In some cases, the company may choose to value its inventory at the lower of cost or market value. This means that the inventory will list on the balance sheet at the lower of its cost or its estimated selling price.
This practice is more common for businesses that sell perishable goods or goods that are subject to rapid changes in market value.
Ultimately, the amount of inventory listed on the balance sheet is a matter of judgment for the company’s management. However, the amount should be accurate and reflect the fair value of the inventory.
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