ch8 main accounts

Discussion in 'CT2' started by saksham, Mar 2, 2017.

  1. saksham

    saksham Member

    How does an upward revaluation of inventories increase pretty tax profit?
    Ref q 8.8 subpart e.
    Please explain
     
  2. I guess Upward revaluation of inventory held refers to the increase in value of closing stock.
    Since we subtract the value of closing stock in the ' cost of sales' part, so it getting subtracted twice and therefore getting added in our calculation of profit.
    So it is resulting in increase in profit
     
    saksham likes this.
  3. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    This sounds like a reasonable explanation to me :)
     
    saksham and Aditya mohan mathur like this.

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