MPR Sanjay Kumar (3029 Points)
24 August 2022
Shruti
(Student )
(586 Points)
Replied 24 August 2022
MPR Sanjay Kumar
(3029 Points)
Replied 24 August 2022
Shruti
(Student )
(586 Points)
Replied 24 August 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14260 Points)
Replied 24 August 2022
Cost of Goods sold as per FIFO method is different. ( Unit first purchase* purchase price) .
Oping Stock + Purchase + Direct Expense - Sales + Direct income + Closing Stock = Gross profit
Gross Profit + Indirect Income - Indirect Expenses = Net Profit
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 25 August 2022
Simple, closing stock = opening stock. Or else
If opening stock is ten inr, purchases is ten inr, sales is hundred inr, GP is eighty inr, closing stock is ten inr, depreciation is ten. Then
Cogs is twenty. GP is eighty inr
So mathematically you can define it as
Sales-GP-Purchases-Depreciation+closing stock= ten opening stock. This is one way I have defined it. There are other ways you can define it. This is funny. So technicians defined this legally as
Cogs+closing inventory-purchases-depreciation. This is a website version. If we test it now, previously our cos is twenty so , ten inr is our opening stock. it works properly. cheers.
So there can be another way you can define it using maths
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 25 August 2022
If you use my formula in an interview, you'll fail. If you use text formula, you'll pass.
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 25 August 2022
That's why B.com people never got far away.
"Live Course on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
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