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Why we exclude amount of * year ?

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Mr.C.A

ipcc

96 Points Posted on 27 November 2011

why we exclude amount of previous year ? for example : Ascertain the amount of stationery debited to Income and expernditure for 31st dec 05

1) creditors for stationery on 1-1-05

2) stock of stationery on 31st dec 05

we exclude / deduct stock of stationery coz this amount for future ?...is it so

Replies (1)

pankaj kumar

studying

194 Points Posted on 28 November 2011

it simple dude.............v hv to debit only consumed part of stationery n the payment made during the year includes payment made to creditors who had supplied goods in last year dat y v deduct it........as far stock concern stock at the end is not used during the year.....so it shuld be deducted..