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Accounting concepts, principles and conventions
Accountancy
While giving example of Matching concept purchase amount was taken into consideration. But under MCQs at the end of chapter 1(v) purchase amount is taken into consideration. I am confused. And how is the answer matching concept for the above?
Answers (5)
Thread Starter
Ratnasri NIs purchase amount taken into consideration while calculating profit under matching concept?
Net profit = Sales - purchases related to sales Even in MCQ , 3lakhs of purchases which are not sold (1/5th of total purchases) are not considered
Thread Starter
Ratnasri NIs purchase amount taken into consideration while calculating profit under matching concept?
Purchases relevant to goods sold will only be taken. 4/5 of purchases - 15L i.e. 12L will be taken and then given expenses of 2.5L, net profit will be 18 L - 12 L - 2.5L = 3.5L
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