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Explain valuation of receipts.
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.
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