Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Inter Dept Trnfr...

Whizkid (student) (640 Points)

14 December 2009

Guys,

If there is an interdept transfer between 2 dept's,..Which dept ll be debit & creditd wit respect to the amt trnsfrd..?!

Eg: If 10000Rs is transferred from Dept A to B, according to my knowledge, Dept B will be debited with 10000Rs and Dept A credited with the same.Is this correct..!? IS this method applicable for both "Transfer of purchase goods & FInished goods as wel",...COz in of of the reputed refernce matrl,...i find,..inverse procedure of accounting, Transfer of purchased goods & Fin gds....SO,also clear me with de same...

Reply asap...

Reply
Follow
Share

2 Replies

Whizkid (student) (640 Points)
Replied 14 December 2009

hey guys any1 reply if ya kno....

Upgrade to CAclubindia Pro. Subscribe Now!

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 14 December 2009

When one department supplies goods to another department, the supplying department should be credited and the receiving department debited.

Usually, goods are supplied at cost, but if goods arre supplied at selling price, a reserve will have to be created in respect of stock of such goods at the date of closing.

The reserve will equal the profit included in the transferred goods.

Sometimes, one department renders services to another department. In such a case also, the department rendering the services will be credited and the one receiving service debited.

Adarsh