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
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details