Valuation of receipts is the price billed in the invoices by the supplier. Following points should be kept in mind for this purpose:

-The trade discount is deducted from the basic price and all other amounts as billed by the supplier are added, like excise duty, sales tax, octroi duty, etc.

-Joint costs may be distributed on the basis of the basic price of the material.

-In case of imported material, the cost of the material consists of a basic price, customs duty, clearing charges, transport chares, etc.