Interprocess profit-% age calculation on transfer price equalisation with % on cost

1859 views 2 replies
User Avatar

Student
82 Points Posted on 16 October 2016

I am having problem in understanding while solving problems on Process Costing- Interprocess Profit case.

Can anyone explain me,how -

- 25% Profit on transfer price is equal to 331/3 % Profit on cost

-20% Profit on transfer price is equal to 25% on cost

Kindly elaborate in detail.

0 Reply Share Follow
On 16 October 2016 at 21:45 Report
Replies (2)
User Avatar

Student CA IPC / IPCC
31 Points Posted on 16 October 2016
Example :-
Let Take transfer price - 100 Rs
And if profit is 25% of Transfer price , then profit will be = 100 × 25% = 25 .
Therefore cost will be = 100 - 25 = 75
Therefore profit on cost = profit / cost × 100
= 25/75 ×100
= 33.33%
2 Reply
On 16 October 2016 at 22:57
User Avatar

Student
82 Points Posted on 17 October 2016

Thanx for your kind help.

Reply
On 17 October 2016 at 06:51


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topic

More recent discussions | Post

Related Topics
Loading

Latest Job Openings

View all
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details