COGS

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sreenath (Querist)
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14 January 2011 Dear Sir,

Cost of Goods Sold is a P&L Item Or Balance Item,Please tell me the Accounting procedure & Capital Stock what does it Mean it is a Capital Account or what.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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14 January 2011
Bhai Saheb,

Better join one good accountancy class.

However; for simplicity keep in mind the following :

1. Whatever assets remains in your hand and liabilities remain outstnaing; will be shown in Balance Sheet.

2. Income and Expenses related items would be shown in Profit and Loss Account.

Cost of Goods Sold is Cost

i.e.

Expenditure

hence pertains to Profit and Loss Account.