While calculating estimates of working capital, whether debtors should be taken at cost price or selling price ?
As in some questions debtors are taken at selling price and in some at cost price.
Reema Sood (RMS/Accounts Executive) (36 Points)
19 September 2011While calculating estimates of working capital, whether debtors should be taken at cost price or selling price ?
As in some questions debtors are taken at selling price and in some at cost price.
CA Ksheerabthi Nathan
(CA in practise)
(167 Points)
Replied 20 September 2011
it is better to take it in cost price as profit element is included in sale price.profit element is not to be included in calculating working capital .it is better to write assumption supporting it
Arniv Sharda
(CA Final)
(3006 Points)
Replied 15 October 2011
cal of debtors can be done either at cash cost or total cost
as the question demands u hav to do it accordinly
cheers
CAclubindia
