Department accounts

Thread Starter

Using the formula u gave, I tried .I m not getting, pls send the solution

CA Suraj Lakhotia Admin

For each department you can use opening stock + expenses - closing stock to arrive at the cost of goods transferred to other department.

Thread Starter

Wat are the expenses sir

CA Suraj Lakhotia Admin

direct expenses given in the question.

Thread Starter

Using the formula u gave, I tried .I m not getting, pls send the solution

Sree sree

3000+8000+5000-4000 = 12000,a transfers to b at 50 percent i.e 12000+50/..18000

Thread Starter

Is this tranfer formula

CA Suraj Lakhotia Admin

For each department you can use opening stock + expenses - closing stock to arrive at the cost of goods transferred to other department.

Thread Starter

How come cost of goods sold formula is the tranfer sir ??

CA Suraj Lakhotia Admin

For that dept, op stock + expenses - closing stock is the cost of goods transferred as there are no external sales.