Inventories

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2010 In our company books its shown
in Balance sheet closing stock=closing stock of Raw materials,w-i-p,stores spares,Finished goods but in Profit & Loss A/C the opening stock and closing stock shown only the stock of Finished goods and w-i-p why ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 June 2010 Then ur purchase must have been including op + purchase - closing. That presentation is is also acceptable. The figure shown is of consumption of raw materials.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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29 June 2010 Agreed with Aditya Ji.
In this case you have to fill opening stock of RM/ Packing material in ledger as opening and you have to also fill closing stock also in ledger. By this you got in Profit & Loss , net balance of purchase i.e Good consumed during the year.

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