New schedule vi - companies act

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Ruksana (Querist)
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15 June 2012 I am confused with 2 heads in statement of profit and loss... what is the difference b/w 2 heads namely cost of material consumed and Purchases of stock in trade.. In which head I have to show purchases in case of trading concerns..

Ki$hor B

Ki$hor B (Expert)
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15 June 2012 Show under "Purchases of Stock in trade"

The other one is applicable mostly for a entity in manufacturing or in similar activity.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 June 2012 If it is the case of trading concern then the head " Cost of materail consumed" is not applicable to you. You will just have to show purchase of goods under "purchase of Stock in trade".

Ruksana

Ruksana (Querist)
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18 June 2012 Thanks....

Ruksana

Ruksana (Querist)
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18 June 2012 Then where we have to show Opening stock, Direct expenses and closing stock?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 June 2012 Direct expense will be booked under direct expense only and one more item will be there called " Increse/Decrease in Stock in trade".
both of them will be separate line items in P&L Statement.

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