Direct Cost booking

Dear Friends 

Your suggestion is required 

Suppose we are a manufacturing concern - Purchased Raw Material at Rs 100 and conversion cost and other direct cost is rs 80 , Selling Price is Rs 210 

Now the problem is we forgot to book conversion cost and direct cost associated with this particular purchase and sold the finished goods at Rs 210 

Now Margin is 210-100 =110 instead of 210-100-80 =30 

Please suggest what adjustments can we make Now when that finished goods is sold without being added direct cost associated with it 

We maintain books in Tally Prime 

Urgent please help 

Replies (1)
  • Corrective Steps: Book the missed direct/conversion expenses of ₹80 via a journal/expense entry and subsequently transfer that cost to Cost of Goods Sold (COGS) since the finished goods are already sold.

  • Impact: This rectifies the inflated profit margin in TallyPrime, bringing it down from ₹110 to the correct ₹30.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details