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Branch accounting

shubham saluja (13 Points)

20 August 2017

why goods are marked on invoice price by head office while sending goods to branch?

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8 Replies

Kaushik Anandan (16 Points)
Replied 20 August 2017

Plz refer to the answer in practice manual question no1 and page 8.2

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shubham saluja (13 Points)
Replied 20 August 2017

I didn't got the practice manual yet
Can you please tell me here?

Kaushik Anandan (16 Points)
Replied 20 August 2017

https://www.icai.org/post.H T M L?post_id=12433

Kaushik Anandan (16 Points)
Replied 20 August 2017

I can view the practice manual for chapter 8 and see de answer

Kaushik Anandan (16 Points)
Replied 20 August 2017

I can view the practice manual for chapter 8 and see de answer

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Kaushik Anandan (16 Points)
Replied 20 August 2017

Did u get?

shubham saluja (13 Points)
Replied 20 August 2017

No I didn't got it

Kaushik Anandan (16 Points)
Replied 21 August 2017

Goods are marked on invoice price to achieve the following objectives: (i) To keep secret from the branch manager, the cost price of the goods and profit made, so that the branch manager may not start a rival and competitive business with the concern; and (ii) To have effective control on stock i.e stock at any time must be equal to opening stock plus goods received from head office minus sales made at branch. (iii) To dictate pricing policy to its branches, as well as save work at branch because prices have already been decided.