banner_ad

Branch accounts doubt

189 views 1 replies

Why are the items of memorandum branch trading and profit and loss account converted into cost price when the goods are invoiced to branch at selling price? Detailed explanation will be very helpful. 

Replies (1)
Coz inter branch transfers if recorded in sales price results in inflating the overall profit by itself...

Like Inter departmental transfer done in Departmental accounts...

The same is applied here...if we record it in sales price...obviously profit will be inflated beacuse of those inter branch transfer only...

To show correctness of profit...it is done


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
27 April 2026
Senior Accountant

Jyoti K agarwal & co

Mumbai

Others

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
29 April 2026
Associate - Audit, Tax & Compliance

Open Co Consulting LLP

New Delhi

B.Com

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
28 April 2026
Senior Accounts Professional

Vivek S Gupta & Associates

New Delhi

B.Com

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details