Introduction:
When calculating the closing stock, it is important to determine whether to consider the cost price or the invoice price of goods sent to the consignee. This decision depends on various factors and accounting principles. In this response, we will examine these factors and explain the appropriate approach in detail.

Factors to consider:
Several factors need to be considered when deciding whether to use the cost price or invoice price for calculating closing stock:

1. Ownership: The ownership of goods remains with the consignor until they are sold by the consignee. Therefore, it is crucial to determine which party bears the risk of loss or damage during the consignment period.

2. Valuation: Generally, the closing stock is valued at cost or net realizable value, whichever is lower. Cost includes all expenses incurred in bringing the goods to their present location and condition.

3. Consignment agreement: The terms and conditions of the consignment agreement between the consignor and consignee should be examined. It may specify the price at which the goods are to be sold or whether any additional charges are applicable.

Calculating closing stock:
Based on the factors mentioned above, the following approaches can be adopted when calculating closing stock:

1. Cost price: If the consignee bears the risk of loss or damage to the goods, and the consignor retains ownership until the goods are sold, the closing stock should be valued at the consignor's cost price. This includes the cost of purchase, transportation, insurance, and any other expenses incurred in bringing the goods to the consignee's location.

2. Invoice price: If the consignee bears the risk of loss or damage, and ownership of the goods transfers to the consignee upon receipt, the closing stock should be valued at the invoice price. This includes the cost price plus any additional charges or markups specified in the consignment agreement.

Conclusion:
In conclusion, when calculating closing stock for goods sent to the consignee at invoice price, it is essential to consider factors such as ownership, valuation principles, and the terms of the consignment agreement. If the consignee bears the risk of loss or damage, and the consignor retains ownership, the closing stock should be valued at the cost price. On the other hand, if the consignee bears the risk and ownership transfers upon receipt, the closing stock should be valued at the invoice price. It is crucial to analyze these factors and apply the appropriate approach to ensure accurate financial reporting.