Features

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Opening Stock

In the case of trading concern, the opening stock means the finished goods only. We take the amount of opening stock from Trial Balance..

Purchases

The amount of purchases during the year includes cash as well as credit purchases. The deductions from purchases are purchase return.

Direct expenses

It means all those expenses which are incurred from the time of purchases to making the goods in suitable condition. This expense includes freight inward, octroi, wages etc.