How is net profit for the current year is overstated, if closing stock is overstated?
Niyantra M
CA Foundation
★ 220
20-Jan-20 07:22
527
Answers (2)
if closing stock worth 10 000 is over stated as 20 000.....then there is an unnecessary credit of extra 10 000 in the trading account.....if there is an extra credit in the trading accout....the net profit will be obviously increased
jsome jsome
CA Inter
★ 575
20-Jan-20 12:41
Draw a trading account and just increase the closing stock. You will figure out why it increases.