Branch Accounting - Dependent Branches - 13. Illustration - 4

Accountancy

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.

Aswin Chandar

CA Final

★ 40K+

13-May-23 12:10

569

Answers (1)

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%

CA Suraj Lakhotia

Admin

17-May-23 12:03