Account 3 Marks Question

Closing Stock or Inventory is valued at cost or net realisable value (market value),whichever is lower.
For example Adjustment
1. stock at the end of the year cost of ₹ 10,000 which market value is ₹ 12,000.
first its shown in trading at Credit of ₹ 10,000 and after that present in balance sheet in asset side with ₹ 10,000.

Office and administration expenses and selling and distribution expenses are shown on the debit side of the Profit or Loss account.