IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Advanced ACCOUNTING - illustration 6

Accountancy

Hi, Advanced ACCOUNTING - illustration 6 Page no.6.31 in study material, capital reserve amount Rs 10000, am not understanding how it comes. Please let me know

Rachith Bhat

CA Inter

★ 10K+

08-Oct-20 16:32

392

Answers (3)

Best Answer

Inter company Owings 50,000*100/125 = 40,000 Cost of goods is 40,000 10,000 is unrealised profit... It should be written off to reserve account or goodwill account