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As per AS -2, Closing inventory is valued at
Cost or Net Realisable value whichever is more
Cost or Net Realisable value whichever is less
Accounting Standard 2 (AS 2) deals with the accounting treatment of inventories by the business entities. It provides details with regards to the items that comprise inventory and various costs associated with such an inventory.
As per Accounting Standard -2, Closing Inventory is always valued at Cost or Net Realisable value whichever is less.
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