Ca-ipcc accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2014 kindly tell me whether we have to give effect of the following in cash flow statement or not
- company decided to value stock at cost, whereas previously the practice was to value stock at cost less 10%. The stock according to books on 31.12.01 was Rs. 216000. The stock on 31.12.02 was correct valued at rs. 300000

Sandeep Dharar

Sandeep Dharar (Expert)
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03 May 2014 No this will not effect the cash flow statement(activities), only the under or over cast in the stock will b recorded.

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2014 but why we will record it? accounts are already closed.. how can we change anything?

Sandeep Dharar

Sandeep Dharar (Expert)
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05 May 2014 U do not have to make entry in books. It will only comes in Cash Flow Statement.

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2014 So this is done with stock only or with other current assents and current liabilities also?

Sandeep Dharar

Sandeep Dharar (Expert)
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06 May 2014 Yes if there is increase or decrease in CA or CL then u must do the adjustments

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2014 we adjust the change in CA and CL after calculating cash from operations before working capital changes. So if there is any other adjustment regarding CA and CL then we will change the figures also for that adjustment. This is what you are saying if i am not wrong

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