How to calculate according to schedule III


This query is : Resolved 

Quick Summary
This discussion clarifies how to calculate the 'Cost of materials consumed' for a Profit and Loss account, as per Schedule III. The correct method involves adding purchases to the opening stock and subtracting the closing stock. It's confirmed that when using this specific calculation, changes in inventory should not be accounted for separately.

02 October 2023 Cost of material consumed
changes of inventory
while preparing profit and loss account.

02 October 2023 Opening balance add purchase less closing stock is cost of materials consumed.

13 October 2023 sir,
when I use Cost of material consumed
then changes of inventories should not be calculated .
please reply.

13 October 2023 Yes, you are right...
...


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