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CA Nitin Wadhwani (Querist)
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18 August 2008 While deter ming net working capital Debtors are e valued at sale price or cost?

Ans.debtors are generally stated at selling price while calculating working capital
but they are taken at "total cost" while calculating "cash working capital" because "our" investment is the cost and profit embedded in debtors is not our investment.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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19 August 2008 Debtors are valued at the invoice value.

In any case the profit generated will be accounted towards your margin,

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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19 August 2008 While deter ming net working capital Debtors are e valued at sale price or cost?

Ans.debtors are generally stated at selling price while calculating working capital
but they are taken at "total cost" while calculating "cash working capital" because "our" investment is the cost and profit embedded in debtors is not our investment.

KAAPIL

KAAPIL (Expert)
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23 August 2008 Srinivas Sir has given the answer.

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