i$.$ The company deals in three products A$,$ B and C which are neither similar nor interchangeable. At the time of closing of its account for the year $2022-23,$ the historical cost and net realizable value of the items of closing stock are determined as:

$\backslash$table$[[$Items$,\backslash$table$[[$Historical cost $($Rs$.$ In$],[$lakhs$)]],\backslash$table$[[$Net Realisable Value$],[($Rs$.$ In lakhs$)]]],[$A$,-,28],[$B$,-,32],[$C$,-,24]]$

i$.$ Historical cost for Item A was $12$ lakhs higher than the NRV$.$

ii$.$ The difference between Historical cost and NRV was registered NIL.

iii. Historical Cost Valued $8$ lakhs below NRV for Item C$.$

$3$ Illustrate the calculation for ascertaining the value of closing stock. $8$ marks

ii$.$ Demonstrate a strategy to deal with the following situation:

"A company deals in purchase and sale of timber and has included notional interest charges calculated $($on the paid$-$up share capital and free reserves$)$ in the value of stock of timber as at the Balance Sheet date as part of cost of holding the timber". $2$ marks