Can anyone pls clear of why in interprocess profit, apparent profit from a process gets deducted from unrealised profit in closing stock to get actual profit, since when closing stock is already deducted from the total along with the necessary proportion of its unrealised profit??????
2 Replies
CA Hardik
(Profession)
(92 Points)
Replied 28 October 2009
Dear Deepak,
Cl Stock of a process contains unrealised profits of the previous process . However Cl stock process is deducted from the cost of the same process,while unrealised profit in cl stock is deducted from the profit of previous process.
Reply
Sandeep Pandey
(CA FINAL)
(1306 Points)
Replied 28 October 2009
- As in the process 1 if we r calculating the cost at that time we r including certain % of profit also. After calculating the cost we r transferring it to Process 2 and we r taking unrealised profits as no one can make profit selling himself...................................
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