Presentation in Profit and Loss account

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This discussion clarifies how to present inventory costs in a Profit and Loss account under Schedule III. It explains that 'Cost of Material Consumed' applies to raw materials, while 'Changes in Inventories' covers work-in-progress, finished goods, and traded goods. Both can and should be shown in the Profit and Loss account for a complete financial picture.

Daya

Daya (Querist)

06 October 2023 How to present profit and loss account
Changes in Inventories
Cost of Material Consumed.
Whether only can show Cost of material consumed show or Both show in P/L A/c while preparing
profit and loss according to schedule III.

RAJA P M

RAJA P M (Expert)

07 October 2023 Of schedule III then ---> Opening Stock (+) Inwards (-) Closing Stock =

RAJA P M

RAJA P M (Expert)

07 October 2023 If schedule III then ---> Opening Stock (+) Inwards (-) Closing Stock = Raw Material Consumed...

Daya

Daya (Querist)

07 October 2023 sir,
I want to know whether
Only changes in inventories how to present , if material consumed not show in Profit and loss account,

Daya

Daya (Querist)

07 October 2023 Sir,
I want to show
changes in inventories how to present it.

Manish

Manish (Expert)

07 October 2023 Cost of Material Consumed - for raw materials only
Changes in Inventories - for other types of inventory, like WIP, finished goods, and traded goods.

Daya

Daya (Querist)

13 October 2023 sir,
whether only one can be shown in profit and loss account
cost of material consumed or
changes of inventories
or
both can be shown in profit and loss account.

RAJA P M

RAJA P M (Expert)

13 October 2023 both will be shown in profit and loss account

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