What Is Difference Between Stock-in-trade And Stores And Spares. Which Of These Is Inventory ?

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Ellie Hoe answered
Stores and spares are the spare parts which are necessary for the production process. They may include equipments, spare parts, tools, components of equipments etc. Stock in trade is the company's securities which are for trading purposes. Both stock-in-trade and stores as spares are balance sheet items. We can only categorize stores and spares as inventory. Stock in trade usually comes under current assets of the balance sheet.

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