06 October 2017
while computing the loss of stock, why do the goods which were wriiten off in the previous year due to poor sellling is added back to the closing stock of previous year? Please give me an answer in simple language
06 October 2017
Reason is that we want to calculate the normal G.P.
Poor selling goods are those which are not sold & valued at normal selling price.
So same is to show at actual value to calculate the normal profit of any business..
CAclubindia
