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
- House Property Reporting in ITR
- TDS Claim year
- Supply through E-commerce Operators
- Rent lease agreement
- TDS Challan Code
- Relief u/s Section 89
- REGARDING SECTION 44AE
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Sales return eway bill
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
