My firm X purchased input worth 90L and made sales of 1.4Cr during Fy 19-20 till date. If our monthly expenses are 4L, and stock value is about the same, where can my funds disappear? I do nit see anything in my bank! How and where do i look for them?
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How to find funds missing?
Replies (1)
There are some things which you should verify :-
1) It may be possibe that your firm has made credit sales and haven't received their money yet.
2) There can be a repayment of loan.
3) Any advance payment made to suppliers.
4) It is also a possibilities that your monthly expenses are not accurate. It could be more.
5) By looking at the data you have provided, Sales 140 lac - purchase 90 lac - expense 48 lac = profit 2 lac. I think you should check the stock valuation again. It could be a factor here.
6) We make P&L account on accrual basis. So the amount of profit you are seeing in your statemen of P&L is not necessary to be available in cash.
Note :- There can be other things too you can work out with the right amount of information.
1) It may be possibe that your firm has made credit sales and haven't received their money yet.
2) There can be a repayment of loan.
3) Any advance payment made to suppliers.
4) It is also a possibilities that your monthly expenses are not accurate. It could be more.
5) By looking at the data you have provided, Sales 140 lac - purchase 90 lac - expense 48 lac = profit 2 lac. I think you should check the stock valuation again. It could be a factor here.
6) We make P&L account on accrual basis. So the amount of profit you are seeing in your statemen of P&L is not necessary to be available in cash.
Note :- There can be other things too you can work out with the right amount of information.
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