question_answer

Draw notes to accounts for change in inventories of Kartik Ltd for the year ended 31st March, 2017 from the following information and determine the amount that will be shown in the statement of profit and loss against change in inventories of finished goods, work-in-progress and stock-in-trade.

Particulars	Opening Inventory (Rs.)	Closing Inventory (Rs.)
Finished Good	5,00,000	4,00,000
Work-in-progress	9,00,000	10,00,000
Stock-in-trade	15,00,000	14,00,000

Answer:

Notes to Accounts

Particulars		Year ended 31st March, 2017 Amt (Rs.)
Change in Inventories of Finished Goods, Work-in-progress and Stock-in-trade
(a) Finished Goods
Opening Inventory	5,00,000
(-) Closing Inventory	(4,00,000)
Sub-total		1,00,000
(b) Work-in-progress
Opening Inventory	9,00,000
(-) Closing Inventory	(10,00,000)
Sub-total		(1,00,000)
(c) Stock-in-trade
Opening Inventory	15,00,000
(-) Closing Inventory	(14,00,000)
Sub-total		1,00,000
Total (a + b + c)		1,00,000

Rs. 1,00,000 will be shown in the statement of profit and loss against change in inventories of finished goods, work-in-progress and stock-in-trade.