Question

From the following information of Hospitality Ltd. for the year ended 31st March, 2018, calculate amount that will be shown in the Note to Accounts on Changes in inventiories of Finished Goods, WIP and stock-in-Trade:

Particluars	Opening Inventory (₹)		Closing inventory(₹)
Finished Goods	5,00,000		5,50,000
Work-in-Progress	4,50,000		4,25,000
Stock-in-Trade	6,50,000		6,00,000

Answer 1

NOTES TO ACCOUNTS

Note No.	Particulars		Amount (Rs)
	Change in Inventories of Finished Goods, WIP and Stock-in-Trade
(a)	Finished Goods
	Opening Inventory	5,00,000
	Less: Closing Inventory	5,50,000	(50,000)
			(50,000)
(b)	Work-in-Progress
	Opening Inventory	4,50,000
	Less: Closing Inventory	4,25,000	25,000
			25,000
(c)	Stock-in-Trade
	Opening Inventory	6,50,000
	Less: Closing Inventory	6,00,000	50,000
			50,000
	Net Change (a+b+c)		25,000

Rs 25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.