Some Accounting Questions

[insaan]

Ans no 01then y trade discount is deducted

Ans no 02
ok for contract A/C exactly i got it..

achaa mujhe lagta hai k WIP A/C is just our amount due from customer A/C ,it exactly goes da same way ,cost incurred to +recognised profit - progress billing,means the balance shall be the amount due from/to customer
except 4 da difference dat B/S shows to date figures and contract A/C shows for the yr figures

infact a contract is like a continous sale ...

and then it wont be rite to call this A/C as contract A/C
this shall b WIP A/C

and as per my new teacher contract A/C is a bit different
it is of P/L nature
means we credit it with revenue recognised and debit with profit recognised & cost incurred
& balance is WIP which wud ultimately form part of cost incurred to date in computation of amount
due to / due form customers....
and this is exactly wat i also see in PAC solutions

but 1nce again i dont agree with this treatment
means if we credit contract A/C with revenue recognised wat we wud debit against it
means in case of progress billling it makes sense

Ans no 03
i mean what is the difference between Cost of sales and Cost of goods sold