Bank Stock Statement
This query is : Resolved
17 November 2010
HI
I need to submit bank stock statement every month to my banker, what is the importance of it.
How to calculate and show it
is it Purchase - sales = stock.
Suppose i have done 10 lakhs purchase and 5 lakhs sales then my stock will be 5 lacs or any other calucation is involved.....
I need to submit bank stock statement every month to my banker, what is the importance of it.
How to calculate and show it
is it Purchase - sales = stock.
Suppose i have done 10 lakhs purchase and 5 lakhs sales then my stock will be 5 lacs or any other calucation is involved.....
17 November 2010
You must have taken CC facility from the Bank and the money which you are utilizing in the business are resulting, directly or indirectly into income.
On the basis of your monthly stock statements
(MST) the bankers ascertain the drawing power (DP), beyond which they would not allow to withdraw money from your account. Suppose your limit is Say Rs. 20 lacs but the DP calculated on the basis of MST comes to Rs. 17 lacs then you would be eligible to utilise upto the DP.
Stock= Purchase- Sales*.94
Assuming that GP is 6% (1.00-.06=.94)
If average GP is say 8% then you have
Stock= Purchase- Sales*.92
You may say -
Stock= Sales -Cost of Goods Sold.
On the basis of your monthly stock statements
(MST) the bankers ascertain the drawing power (DP), beyond which they would not allow to withdraw money from your account. Suppose your limit is Say Rs. 20 lacs but the DP calculated on the basis of MST comes to Rs. 17 lacs then you would be eligible to utilise upto the DP.
Stock= Purchase- Sales*.94
Assuming that GP is 6% (1.00-.06=.94)
If average GP is say 8% then you have
Stock= Purchase- Sales*.92
You may say -
Stock= Sales -Cost of Goods Sold.
Message likes :
1 times
17 November 2010
Generally each bank has its own standard formats for this purpose.
Mr. Paras Bafna rightly said that monthly stock statement are being provided to banker for both drawing power determination & whether there is any loss in the security provided by the constituent.
Just want to add one thing
opening stock + purchase - COGS = Inventory
Mr. Paras Bafna rightly said that monthly stock statement are being provided to banker for both drawing power determination & whether there is any loss in the security provided by the constituent.
Just want to add one thing
opening stock + purchase - COGS = Inventory
20 November 2010
HI
thanks for the clarifications.
any pratical literature on this please share with me
thanks for the clarifications.
any pratical literature on this please share with me
05 June 2011
Submit your actual stock in bank prescribed format
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- Booth for sales promotion
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
