Study Material & Notes
Study Material & Notes
or
Study Material & Notes
(i) Cost of Revenue From Operations = Net Sales +/– Gross Profit/Loss
(ii) Average Inventory = (Opening Inventory+Closing Inventory)/2
(iii) Cost of Revenue From Operations = Opening Inventory + Purchases (net) + Direct Expenses – Closing Inventory
(i) Credit Revenue From Operations = Total Revenue From Operations – Cash Revenue from Operation
(ii) Average Trade Receivables = (Opening Trade Receivables+Closing Trade Receivables)/2
(iii) Trade Receivables = Debtors + Bills Receivables
Note: Provision for doubtful debts is not deducted
(i) Net Credit Purchases = Total Purchases – Purchase Returns – Cash Purchases
(ii) Average Trade Payables = Opening Trade Paybles+Closing Trade Paybles/2
(iii) Trade Payables = Creditors + Bills Payables
Study Material & Notes