The Stock Book
Chapter Twenty-Eight
Syllabus topic 5, "Types of Farm Records- Specimen. (Muster roll, Overseer’s diary, Cultivation register, Cashbook, Stock book, Issue register, Receipt register, Labour requisition book, Attendance register, Deadstock, Ration book, Peon book, General register)."
Pages 64 to 65 of 110
In one line
The stock book is the record of every item held in the farm's stores, showing for each item the opening balance, the receipts, the issues and the closing balance, in quantity and in value.
It is the farm's equivalent of a stores ledger, and there is one folio for each item.
What is in it
Two classes of thing, and they behave differently.
Stores and inputs. Seed, fertiliser, pesticide, feed, diesel, spare parts, packing material, twine. Bought in, issued out, and consumed by a crop or by the livestock.
Produce. Cotton, cane, jowar, vegetables, milk, fodder. Produced by the farm, received into store from the field, and issued out to sale, to the household, to labour as wages, or to the livestock as feed.
The second class is what makes a farm's stock book different from a factory's. Produce arrives with no invoice and no purchase price, and how it is valued is a real question, answered below.
The specimen
Shivneri Farm, Baramati. Stock book. Item: Urea, 45 kg bag. Unit: bag.
| Date | Particulars | Receipts | Issues | Balance | Rate Rs. | Value Rs. |
|---|---|---|---|---|---|---|
| 01-11-2026 | Balance b/d | 14 | 350 | 4,900 | ||
| 04-11-2026 | Purchase, Baramati Agro Centre | 20 | 34 | 350 | 11,900 | |
| 05-11-2026 | Issued to field 1, sugarcane | 6 | 28 | 350 | 9,800 | |
| 05-11-2026 | Issued to field 4, cotton | 3 | 25 | 350 | 8,750 | |
| 17-11-2026 | Issued to field 2, sugarcane | 5 | 20 | 350 | 7,000 | |
| 26-11-2026 | Issued to field 6, jowar | 2 | 18 | 350 | 6,300 | |
| 30-11-2026 | Balance c/d | 18 | 350 | 6,300 | ||
| Total | 20 | 16 |
Physically verified on 30-11-2026 by S. R. Pawar. 18 bags found. No difference.
The check on the page. Opening 14, plus receipts 20, less issues 16, is a closing balance of 18. Every stock book folio must satisfy that identity, and one that does not has an entry missing.
How produce is valued
A bag of urea has an invoice. A quintal of cotton does not. Three bases are used, and the answer must name which one is being applied.
1. Cost of production. The cost from the cultivation register, divided by the yield. Conservative, consistent with the cost concept, and the basis most farm accounts use for produce held for sale.
2. Net realisable value. Market price less selling expenses. Used where cost cannot be ascertained, and required by AS 2 where it is lower than cost.
3. Fair value less costs to sell. Required by Ind AS 41 paragraph 13 at the point of harvest, for an entity applying Ind AS, and that measurement then becomes the cost carried forward under Ind AS 2.
A farm applying Ind AS uses the third. A proprietary farm keeping ordinary accounts uses the first or, where it is lower, the second. The link between the two halves of this paper is exactly here.
The rest of this chapter
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