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subeesh p

subeesh p

CA Inter

1K+

28-Apr-20 16:35

17

Accounting for independent branch illustration no. 11 Messrs ramchand & co

This question demands preparation of branch P&L, branch assets ac in the books of HO after incorporating trial balance as given in the question. 1,Such TB showing an account called head office current ac. What is the purpose of the account in this question? 2, after incorporating the TB in HO books, how can we transfer only cost portion of goods from HO ac & opening stock ac to trading & P&L. Becose if it done like that the profit portion of such ac still remain in such ac

Answers (1)

ruchi lahoti

ruchi lahoti

Moderator

13-May-20 15:33

1. In order to know the amount payable or due to Head Office...Its current account is necessary 2. Because as per AS-2 Inventories to be recorded at cost and the Stock Reserve a/c will take care of the loading