In Profit and Loss Statement Prepared at year End Change In Value Of Stock Is recorded In P&L ( Value of Opening Stock-Value of Closing Stock ) In Expense Side.
Sole Proprietorships , Partnerships , All Other Forms Of Organizations (Except Companies) Record Change in Stock As In The Image Below:-
Companies Show Change in Stock as Follows:-
So, Can Anyone Suggest Any Method To Obtain The Said In Statement of Profit And Loss
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There are different ways of reporting Cost of Goods Sold (COGS). There is the periodic system and the perpetual system. Manager uses the perpetual system.
I suggest you do some wider reading on the subject. This would be a good start:
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@AJD Perpetual System is Used By Big Sophisticated Entities (Only Some Entities) And Small Business Owners Uses Periodic System of COGS.
As This is a P&L As Per Company Act 2013 And It is required To Show change of stock In P&L ( as it is Mandatory ) See Format of B/S And P&L As per Co. Act 2013
This is Part of P&L For A Small Business And Reporting of Opening and Closing Stock Is mandatory as per Income tax Act 1961.
So Perpetual System Of COGS Is Not Allowed As per legal Provisions Applicable.
The example you have displayed is a summary list of what items need to be considered when producing a P&L. Not every company will have all items.
@AJD If any Company Has A Stock (Either Stock in trade or Finished Goods Even for WIP And Raw material) Then it is Mandatory To Show Change in Stock In Statement Of Profit & Loss
That statement is simply not true. Businesses of all sizes use many different methods for inventory valuation.
This is also not true. And it is not Manager’s method of determining cost of goods sold that is perpetual. The overall design of the database is perpetual. Cost of goods sold (represented by the Inventory - cost account) is determined from the value of the inventory items sold in the Inventory on hand account at the moment the sales transaction is entered. Manager’s system for inventory valuation is the average cost method.
Change in value of inventory can be determined from successive balance sheet reports. Or, you can abandon Manager’s built-in inventory valuation entirely and design a chart of accounts to facilitate the opening/closing stock value determination directly.
However inventory is managed, Manager is not necessarily going to produce the exact format various organizations and government desire. The point is not to reproduce prescribed report formats, but to furnish the information necessary to support necessary management and government oversight.
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Good reply
It’s not a sustainable presentation