Departmental accounts
This query is : Open
Govind Menon
(Querist)
21 October 2017
Why is INCREASE IN STOCK used for calculation of stock reserve and not CLOSING STOCK in some cases?
21 October 2017
Commonly it's using for showing Profit. Also bank process....
CA Amit Talada
(Expert)
21 October 2017
depends on whether profit is included or not. normally profit is included in opening stock as closing stock of previous year becomes opening stock of next year. regarding closing stock of current year it depends on whether it is valued at cost or loaded price, if its valued at loaded price then reserve is shown separately
21 October 2017
Dear Sir.,
Opening stock ll be calculate as expenditure account.... Closing stock is also calculated in Income account...
Please correct me if I'm wrong...!
Govind Menon
(Querist)
21 October 2017
Sir, so do we use INCREASE IN STOCK when there is no profit element in both opening and closing stock?
21 October 2017
If you increase the stock automatically increase your profit portion...
Govind Menon
(Querist)
22 October 2017
Sir, what I was asking was the case of unrealized profit.
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