While calculating estimates of working capital, whether debtors should be taken at cost price or selling price ?
As in some questions debtors are taken at selling price and in some at cost price.
While calculating estimates of working capital, whether debtors should be taken at cost price or selling price ?
As in some questions debtors are taken at selling price and in some at cost price.
it is better to take it in cost price as profit element is included in sale price.profit element is not to be included in calculating working capital .it is better to write assumption supporting it
cal of debtors can be done either at cash cost or total cost
as the question demands u hav to do it accordinly
cheers
CAclubindia
