Sales& closing stock in income and expenditure account

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 21 June 2014

this is really confusing. you are saying it is a non trading org. but it is still engaged in activities of sales and purchase. this is obviously a trading activity.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 21 June 2014

show sales on income side and cost of goods sold on expenditure side. cost of goods sold = op. stock + purchase - cl. stock

NILA REJESH P

Chartered Accountant

815 Points Posted on 22 June 2014

Agree with Sri.Tribhuvan.

DILLIP KUMAR BIDHAR

BM

97 Points Posted on 22 June 2014

My question is not like that.If a NGO have some production activity,how it will be reflected in income and expenditure Account .

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 22 June 2014

i already gave reply to your query. see my second reply.

NILA REJESH P

Chartered Accountant

815 Points Posted on 23 June 2014

Income and Ex account is accrual. So, you can show there.

sanjeev kumar goel

Advocate

260 Points Posted on 24 November 2014

If NGO has production activity then the postings will be made in manufacturing nad sales account not under income and expenditure account as income and expenditure account is for non trading activities only not for production (manufacturing) or trading activities. So prepare manufacturing and sales account not income and expenditure account.