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Creditors

Financial Management

Estimated production:1000 units In some problems while making payment to creditors they are including 1000 units cost + closing stk for that year In some way estimate production: 1000 units Payment to creditors: only for 1000 units made Why? Kindly if anyone's know.. say!!

Saravana Perumal

CA Inter

★ 2K+

17-May-23 06:33

189

Answers (4)

Pls share the question. We need to check the exact wordings of the question.

CA Suraj Lakhotia

Admin

17-May-23 11:45

CA Suraj Lakhotia Admin

Pls share the question. We need to check the exact wordings of the question.

Here they take sales as 18 Lakhs as full sales (9000*20) after that they have identified Credit and cash sales, but also they mentioned Closing stock Finished goods

Screenshot_2023-05-17-12-14-10-20_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Screenshot_2023-05-17-12-13-57-57_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Thread Starter

Saravana Perumal

CA Inter

★ 2K+

17-May-23 12:18

Thread Starter

Saravana Perumal

Here they take sales as 18 Lakhs as full sales (9000*20) after that they have identified Credit and cash sales, but also they mentioned Closing stock Finished goods

Here opening and closing stock of raw materials is assumed to be same. If the company is in its first year of operation, in that case closing stock is added to the current production