How is profit reduced ? If cost is reduced then profit is increased
Sushmita Chowdhury
CA Inter
★ 2K+
18-Apr-24 07:48
364
Answers (4)
Best Answer
Imagine trading account, on credit side we have sales and closing stock.
If credit side is more than debit side ,we will have gross profit.
Now in this case closing stock value has decreased.
Which causes reduction in gross profit.
Aravind Kumar
CA Final
★ 165
18-Apr-24 11:37
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Sushmita Chowdhury
CA Inter
★ 2K+
18-Apr-24 07:48
change in policy has reduced current profit and value of inventory by ` 16,000
How ?
