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Why we are showing purchasers and cost of consumed materials, is it double the cost?


shivaji (job)     28 October 2019

shivaji
job 
 17 likes  419 points

| My Other Post

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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avater

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907))     31 October 2019

Prakash Gehani
Consultant & Teacher(Whatsapp 8718057907) 
 154 likes  1286 points

View Profile | My Other Post

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.

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