shivaji (job) 28 October 2019
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
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Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) 31 October 2019
No these are two seprate purchases.
Purchase of Stock in trade means purchase of finished goods
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.