: A companys accounting policy is to value stock at lower of cost and net realizable value, 40% sales are on credit. Selling expenses are 10% of sales value and collection charges are 1% of Debtors.

Items	Cost (Rs.)	Sales Value (Rs.)
A	80,000	120,000
B	98,000	101,000
C	50,000	40,000
D	89,000	73,000
E	94,000	108,000
F	180,000	205,000
G	194,000	210,000

Required:

1. Determine the value of stocks as on 30-6-2000. (7+3 Marks)
2. If NRV is lower than Cost, then how accountant will report the difference of NRV and cost in its financial statement?