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In this rtpmay19 , question 9 , sales-cost = profit rite? Then why institute has written it as sales+closing stock- cost = profit?

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

15-Nov-20 10:39

18

Answers (2)

Because in Sales - cost Cost = cost of goods that are sold i.e COGS ( assuming these are no sales related expenses) COGS = Cost of production (COP) - closing stock (CS) Sales - COGS = Profit Sales - (COP - CS) = Profit Sales - COP + CS = profit


Sriram Somayajula

Sriram Somayajula

Admin

15-Nov-20 10:44

OK . Thax sir .


Swathi Krishna

Swathi Krishna

CA Inter

7K+

15-Nov-20 10:46

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