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Envolep and A4 paper stock

19 June 2022

a company has stock of envelope and A4 paper of rs 200000 they use envelope and paper for invoice what are its treatment does the stock of it is assets ? and how to find its yearly consumption ?

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CA. ANKIT PANDYA (CA) (682 Points)
Replied 20 June 2022

What is the Company's Main business?, I mean does it sells envelopes & Paper?

If no, then it should be charged to PnL as Printing & Stationary expenses. in such case, you will not be required to report consumption of it any where in financials.

However for your own internal control purpose you can derive the estimated consumptions based on budgeted Sales / Target sales for that specific period. Past trends can also help in this regards.

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