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.
Menu
Branch accounts doubt
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
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
Recent Threads
- Many of my clients who are bank employees received
- Missed filing for AY 2022-23. TDS refund possible
- Form 26QB: Assessment Year Based on Payment Date o
- Revision of Tax Audit
- IT Return 2023-24
- LUT for Companies Using EVC and Not DSC?
- UDIN Generation 44ADA
- Working with a CA as an NRI: Proper Income-tax e-F
- Taxation on ETF
- Gstr9 8f is used for 2023-24 reversal
Related Threads
CAclubindia
