Dear Sir,
I am new to this construction co. I want to find the work in progress from the given data ;
Opening WIP 49,14,088
Purchases 65,15,920
Sales 1,34,39,688
Direct Exp 36,00,806
GP to add 11.50%
How to find the closing WIP . What will be the WIP for given instance.
Please Help
Hello,
As per the details given, the closing WIP will be a kind of stock for the construciton company and so according to the principle of AS-2, we will value the inventory as per cost and no need to add GP.
One thing to clarify, the sale amount which you mentioned is according to me the Advance booking amount.(please clarify)
IF so then the value will Rs.15030814(op+purchase+exp). Sale will not form part of WIP.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
