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I have doubt in By product cost is deducted from total expenses. The selling price is rs.25 Selling price means cost plus profit , In the given question we have deducted the additional cost of rs.6000 and r.4000 If profit s in the selling price , we should also deduct rs. 5000 profit to arrive cost right? Y didnâ??t we

Susai Yappan

CA Inter

★ 12K+

19-Oct-21 11:43

425

Answers (1)

Whatever revenue is realised from sale of by product is reduced. Deduction of additional cost is to arriive at the NRV (Net realisable value including profit/loss) at spliit off point.

CA Suraj Lakhotia

Admin

19-Oct-21 15:46

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