why we add increase in current asset and decrease in current liabilities & deduct decrease in current asset and increase in current liabilities FROM OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES aS pER AS-3??

Kindly explain with current asset example of prepaid expenses and current liability example of Outstanding expenses?

THank you.

Can any one please help me to solve the given problem?

Purchase Price per component=rs.100
Cost of an order=Rs.50
Annual cost of carrying one unit in inventory =Rs.10% of Purchase Price
Total cost of carrying of inventory and ordering cost Per annum=Rs.1000
The company has been offered a discount of 1% on the price of the component provided the lot size is 500 components at a time.

a.Calculate the EOQ
b. Advice whether 2% quantity discount offer can be accepted.

Would your advice differ if the company is offered 5% discount on a single order?

Can any one please help me to solve the given problems:
1.Budgeted factory overheads=Rs.16,50,000
Factory overheads incurred during the month=Rs.16,20,300
Absorbed overheads during the month=Rs.16,17,100
Budgeted labor hours=50,000hrs
The actual labor hour worked for the month=?

WHETHER SALES RETURNS AND CREDIT NOTES ISSUED FOR EARLIER YEAR SALE FOR WRONG BILLING, RATE DIFFERENCE WOULD BE ADJUSTED IN CURRENT YEAR'S SALE AFTER LAST YEAR'S BALANCE SHEET HAS BEEN FINALISED? WHAT ARE THE CONCERNED IAS REGARDING THIS?

-------------RANJAN CHAKRABORTI

Looking for test paper note for getting clearance in study note 15 & 16. If anyone has these notes could u let me know.

Does provision for doubtful debts and provision for discount on debtors has any effect on working capital? If yes, can u plz explain how it affects?

Thank you

Dear Sir,

If i have qurarry in profit & loss account.
How can i check where is diffrence.And pforit ratio calculation.and and some useful formolas of accounts.
And please advice me some useful formolas of
1.Prepaid rent
2.Prepaid insurence
3.Interest on OD
4.Asset calculation.

Hi Sir,

Could you please clarify

can depreciation be charged before commencement of business in case of a newly formed company??? if yes..then as there is no P&L a/c..the same would be treated as pre operative exp..isn't it???

how to do share entry from contract note (purchase & sale)?

Please can you tell me that FD for the period of 6 months or more, is equivalent to cash or not. Furthermore, please tell whether FD for the period more than 1 year can be assumed as current asset.

And please support your suggestions with logical reasons also.

Thanks