Stock in the sense used here may cover stock of raw materials, loose tools, brought-out goods, finished parts, partly made goods and work in progress. So far as raw materials are concerned, the generally accepted method of valuing stock is on the basis of cost or market value, whichever is the lower. Neither cost nor [...]

1. The purpose of the Profit and Loss Account The Profit and Loss Account is intended to show the final surplus available for appropriation, i.e. either for distribution to the proprietors or allocation to a reserve account. The account must therefoore contain all the remaining expenditure incurred over the period covered other than