28 August 2010
in trading & P&L do we always take goods sent to branch,closing stock at cost??in some question i found Goods sent to branch,closing stock were at CP whereas in some que they were at Invoice price..even in former case it was given that head office send goods to branch at cost + X% profit? kindly elaborate
28 August 2010
Tranfer at Cost price means HO sending goods without loading profit margin, Invoice price means second case loading profit margin, while preparing branch accont you need to convert all stock, In the given value either Invoice price or cost price, While given I.P you need to prepare separate stock a/c
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