Doubt in estimating working capital

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rocky (Querist)
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20 July 2015 Are debtors valued at cost price or selling price while preparing estimated working capital? Is it different for total cost basis and cash cost basis?

Amol S Joglekar

Amol S Joglekar (Expert)
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20 July 2015 While estimating Working capital, the debtors are to be valued at selling price.

This confusion creeps in because, many a times bankers ask for the same while financing the working capital....

But while estimating the working capital needs, one has to record the debtors at selling price.

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