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Sir Cogs=os+purchases-closing stock -sales Or below screenshot is correct please advise me sir

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97bb3b6f-0a0d-420f-ab8e-79b2a9bde04e.jpg


sai t

sai t

CA Foundation

295

01-Apr-21 21:34

26

Answers (15)

Screenshot one is correct because you are finding the sales value at cost


Meda Jeevansai

Meda Jeevansai

CA Foundation

11K+

01-Apr-21 22:17

Screenshot one is correct because you are finding the sales value at cost

why sale is not included


sai t

sai t

CA Foundation

295

01-Apr-21 22:34

why sale is not included

Sale includes cost + profit. If We need cost of the goods sold we need to add opening stock and purchases and subtract with P/R and closing stock. If you observe above you will find all are at cost only


Meda Jeevansai

Meda Jeevansai

CA Foundation

11K+

01-Apr-21 22:50

why sale is not included

No it should not be included. For example If a merchant had opening stock worth RS.20,000 And the net purchases worth RS. 1,00,000 And the closing stock left with him is worth RS 30,000 It clearly shows that he sold goods worth RS 90,000 So that the forumula is Cost of goods sold =opening stock+Net purchases-closing stock Net purchases =purchases - purchase returns


Balamurugan Venkateswaran

Balamurugan Venkateswaran

CA Inter

475

01-Apr-21 22:50

Unsold cost should not be included I am right

Am I right??


sai t

sai t

CA Foundation

295

01-Apr-21 22:57

Am I right??

Sale(either at cost or selling price) should not be included Because The purpose of the formula is to find out the cost of goods sold.(i.e., sales at cost price) Closing stock is the cost of goods unsold and it is to be reduced from the summation of opening stock and net purchases to arrive at the cost of goods sold.


Balamurugan Venkateswaran

Balamurugan Venkateswaran

CA Inter

475

01-Apr-21 23:02

Screen shot is correct

Thank you bro


sai t

sai t

CA Foundation

295

02-Apr-21 09:26

Direct expenses will also comes under cogs ??

Yes


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Apr-21 12:45

Yes

Sir but why they have not given in icai material


sai t

sai t

CA Foundation

295

02-Apr-21 12:47

Sir but why they have not given in icai material

Which chapter did you refer?


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Apr-21 13:12

Which chapter did you refer?

Chapter 7 icai material sir


sai t

sai t

CA Foundation

295

02-Apr-21 13:58

Chapter 7 icai material sir

Refer to page no 7.6


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Apr-21 14:42

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