query-value addition

What is the meaning of increasing of stock, decreasing of stock and how to treat them while Preparing value added statement?


Please clear.
Thanks in advance
 

Increase in stock = closing stock - opening stock

Decrease in stock =opening stock- closing stock

when preparing VAS , increase in stock will add to income while decrease in stock will reduce ur income

for further knowledge , when we prepare profit and loss a/c in vertical form

we show " increase / decrease in stock " under Expenditure A/C.

INCREASE WILL ADD TO PROFIT.  WHILE DECREASE IN STOCK WILL REDUCE THE  PROFIT