1.Cost of materials consumed.
2.Purchases of Stock-in-Trade.
3.Changes in inventories of finished
While preparing profit and loss statement under sechdule 3 why we are showing purchasers and cost of materials consumed ?
Is it double the cost?
I am unable to understand please explain
No these are two seprate purchases.
Purchase of Stock in trade means purchase of finished goods
and
Cos of material consumed means: Opening Stock of Raw Material + Purchase of Raw Material - Closing stock of raw material.
So if someone is manufacturer as well as trader, he will take both purchases.
CAclubindia
