In first year should any chemical manufacturing company book any profit where there is no sale at all in first year. guide if it should show all expenses as W I P or else??
waiting for reply
Pooja
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 06 January 2015
Logically when thiere is no sale only how can there be profit in any year.
Pooja
(Accountant)
(103 Points)
Replied 06 January 2015
but in construction contracts, it happens. profit is booked on percentage. so tell if in manufacturing company also we have to book any profit or not
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 06 January 2015
In construction contracts there is accurual of revenue as and when the construction is ongoing so even as -7 says the same.
in case of manufacturing it is not the same and profit is earned only on saling the product and dedcuting the exp to know the exact profit, so if there is no sale then there cannot be any profit.
CAclubindia
