Closing stock
This query is : Resolved
13 April 2012
Dear sir,
Closing stock is an item of current assets then why it appear in trading account?
Please clarify
Thanks in advance
Closing stock is an item of current assets then why it appear in trading account?
Please clarify
Thanks in advance
14 April 2012
Assume that u have incurred Rs. 1,000 for producing 100 units. Assume that, only 90 units are sold at Rs. 11 and balance 10 unsold as on closing date. However, ur trading account show Rs. 1,000 as per cost incurred and sales of Rs. 990 thereby profit of Rs. 10 only which is not correct since u have some stock left out in ur hands. If u credit trading account with stock of Rs. 100 i.e. 10 units * Rs. 10, then profit will be Rs. 90 which is Rs. 990 + Rs. 100 - Rs. 1,000.
Another way to derive profit is cost of 90 units sold is Rs. 900 and sale value is Rs. 990, then profit is Rs. 90.
Another way to derive profit is cost of 90 units sold is Rs. 900 and sale value is Rs. 990, then profit is Rs. 90.
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- ADVANCE PAYMENT OF ADVOCATE
- DIN reactivation
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- Condonation . E-Verification of last year return .
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- CREDIT NOTES WITHOUT GST
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Depreciation of fixed assets- coop housing society in mumbai
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
