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Envolep and A4 paper stock

Others 175 views 2 replies
a company has stock of envelope and A4 paper of rs 200000 they use envelope and paper for invoice what are its treatment does the stock of it is assets ? and how to find its yearly consumption ?
Replies (2)

What is the Company's Main business?, I mean does it sells envelopes & Paper?

If no, then it should be charged to PnL as Printing & Stationary expenses. in such case,  you will not be required to report consumption of it any where in financials.

However for your own internal control purpose you can derive the estimated consumptions based on budgeted Sales / Target sales for that specific period. Past trends can also help in this regards. 

 

Why there is no need to report the consumption of paper and envelope can you please explain and as per which concept ??


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