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Branch accounts

Accountancy

In the question attached, opening stock, transfer from H.O. and closing stock are at invoice price whereas it is mentioned at the top of the image that these items should be at cost. Pls clarify.

Sibi Srinivasan

CA Final

★ 22K+

16-Apr-22 19:13

470

Answers (2)

At what amount the goods are receiving by branch from head office(invoice prize) they(branch) treat it as cost and add some profit margin to that cost then branch will sold to that prize .

Lakki Kamu

CA Final

★ 4K+

16-Apr-22 21:37

Ok thanks!

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

17-Apr-22 07:35