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In Chapter 10, FM, G-2, Book back problems like 4, 6,7 Debtors have been calculated after finding Cash cost of sales and then applied-- Cash cost of sales* debtors period / 360, but in some problem like before 4,6, 7 they had calculated Debtors value as Sales * Debtors period/360.. why such treatment in that such sums alone... Please tell me if anyone know.
Answers (7)
CA Suraj Lakhotia Admin
Both are acceptable. It depends on the information given in question.
This is for exams only :)
aditya yanamandra Faculty
Usually Credit sales is the most appropriate to use for the computation .. but in case the information is unavailable cost of sales may be used alternatively.. it is advised to mention the same as a note in the examination while solving the problem
But in such question there is sale mentioned. But still we had taken from Cost of cash sales that's why I'm little bit confused
Thread Starter
Saravana PerumalBut in such question there is sale mentioned. But still we had taken from Cost of cash sales that's why I'm little bit confused
ICAI has unfortunately used incorrect method even when information is given. Please use credit sales and state your assumption clearly. If you have a time left after finishing the full paper , you work out the solution based on alternate assumption as well