CA Inter doubt
In question 2 please explain stock reserve (opening) calculation pls
Asked by Mansi31 Jul 2024362 views
2 answers
Rajiv · 31 Jul 2024
Profit on sale (invoice price) = 20% And opening stock is at invoice price Therefore profit is included in opening stock i.e 30000 * 20 % = 6000 So to get opening stock at cost profit is credited
Iyer · 31 Jul 2024
1/20 on sale ie 1/5 Opening stock reserve =30000/5=6000
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