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

Branch Accounting

Accountancy

Hi, in illustration 10- Q1. Is 1200 opening stock reserve of branch or ho? Q2. Why are we debiting closing stock reserve in HO column and not BRANCH column when we are calculating closing stock reserve on BRANCH closing balance that is 9560.

Karan Chellani

CA Inter

★ 0

10-Nov-20 10:00

382

Answers (1)

Branch accounting is done at cost to branch. The excess profit which is generated because goods are invoiced at a higher price, it is to be removed from HO as it is not yet earned.