Inventories

Here, The net profit is 6,00,000 and inventory is 3,75,000. But it is calculated without taking some transaction into the accounts. There are five such cases here. We have adjust these transactions and find the correct inventory in hand and also correct net profit. For that we can use two methods, we can find by using " profit and loss adjustment A/c " or "trading A/c".

Vijay K

CA Inter

★ 9K+

29-Nov-22 16:23

I hope you got it, if not mention where you didn't get the answer.

Vijay K

CA Inter

★ 9K+

29-Nov-22 16:24