Branch Accounting - Dependent Branches - 13. Illustration - 4

answered on 17-May-23 12:03

In the above illustration it is given that goods are invoiced at 120% of cost and sold by branch at 150% of cost. But my doubt is when the branch sells at 150% of cost, doesn't that mean 150% of branch's cost (invoice price + branch's expenses). Kindly explain.

latest answer

Cost + 20% and Cost + 50% Since no other info is given it can be assumed to be the cost to HO. Else they would have given Invoice + 50%

Aswin Chandar

CA Final

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Inventories chapter

answered on 13-May-23 07:44

In inventories chapter, one of the problems you have calculated opening stock Rs 1643312 , while explaining this work you said to subtract 65750 - 16438 - 81000 we get1643312 as opening stock. But we don't get sir that much value. I have attached screenshot of that work . Please make it clear.

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Opening stock to be bal fig, you should do: closing stock+sales- grossprofit- purchases 1675000+65750-16438-81000=1643312

Anil Raj

CA Foundation

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Liquidation

answered on 12-May-23 11:33

In question 4.8 how are unsecured creditors calculated ,pls help with its calculation?

latest answer

My bad,didn't see the creditors

pradyumna hariramani

CA Inter

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291

Liquidation

answered on 12-May-23 12:10

In question 4.2 ,the surplus available is 8,05,150.In the calculation of surplus available(after the question ends)they have reduced from 8,07,000.Why have they added back 1,850?

latest answer

805150 is after deducting the collection charges

pradyumna hariramani

CA Inter

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252

Liquidation

answered on 12-May-23 17:59

In question 4.1 why are we adding amount payable to Equity holders to balance after payments made?Loss to equity share holders = Paid up share capital - balance available after making all payments.

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Because 20300 is a negative figure

pradyumna hariramani

CA Inter

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252

AS 4

answered on 12-May-23 10:16

During the year means which year ?

latest answer

in 21-22

Nainika Tummala

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Liquidation

answered on 12-May-23 09:37

Preliminary expenses should be ingnored in liquidation of statement why?

latest answer

Okie sir

Ganesh U

CA Final

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Amalgamation

answered on 17-May-23 12:25

Why propose dividend is not transferred to realisation a/c but coming bs of Absorbed comp?

latest answer

The dividend should be paid by the selling company ideally.

Ganesh U

CA Final

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Liquidation

answered on 12-May-23 11:28

What is the treatment of 'P&L Debit balance' in Liquidator's statement of accounts?

latest answer

Thanks sir

James Js

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Buy Back

answered on 12-May-23 10:57

In Question 1.2 the premium of buy back is not written off,but CRR is created and in question 1.4,neither the premium on buy back done is written off nor Caoital Redemption account = to the Nominal value of shares is created .Why?

latest answer

Yup

pradyumna hariramani

CA Inter

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