Branch accounting

227 views 8 replies
why goods are marked on invoice price by head office while sending goods to branch?
Replies (8)
Plz refer to the answer in practice manual question no1 and page 8.2
I didn't got the practice manual yet
Can you please tell me here?
https://www.icai.org/post.H T M L?post_id=12433
I can view the practice manual for chapter 8 and see de answer
I can view the practice manual for chapter 8 and see de answer
Did u get?
No I didn't got it
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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register