IndigoLearn

Branch Accounting

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.

Attachments

20201110_095223.jpg


Karan Chellani

Karan Chellani

CA Inter

0

10-Nov-20 10:00

25

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.


Suraj Lakhotia

Suraj Lakhotia

Admin

10-Nov-20 18:12