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In trading p&l method , when goods are sent at invoice price Should we convert opening stk , closing stk , goods recd. from headoffice and those returned them back at cost OR Value everything invoice price only and DEBIT stock reserve of CLOSING STOCK in p&l ??
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Thread Starter
Lalit SanpalAnd sir what will be amt of stock reserve.. Branch profit Or Branch profit + profit included by head office while sending goods to branch
Branch profit will be in the Trading account itself. So, it will be unrealised profit in the closing stock. Pls refer Illustration 5 on ICAI SM 13.29 for better understanding
Sahibdeep Singh
Latter - It's invoice price only. Normally in such illustrations, selling price for branch is different. Stock reserve comes in note below.
And sir what will be amt of stock reserve.. Branch profit Or Branch profit + profit included by head office while sending goods to branch
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