Dear Freinds ,
Pls help regarding how do we need to opening balance if question is written in this way ::
goods are invoiced to branch at cost plus 33.33%
opening stock at branch at cost to branch is 60000
Pls tell me wat will be amount for opening stock while making branch a/c.
is it 60000*25% = 15000+60000 = 75000 ???
No...... its like the branch a/c will show Cost+Profit fig so the 60000 (Since its cost to branch) is inclusive of profit..
so the cost of HO will be 60000-15000=45000
While i suppose br a/c must show 60000
Dear Vikas,
thnx for ur reply .. but actualy m confused basicaly how i will understand whther loading is included in opening balance or not ????
Dear Vikas,
thnx for ur reply .. but actualy m confused basicaly how i will understand whther loading is included in opening balance or not ????
Shyam S Gupta and Company
New Delhi
CA Inter
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M N Rao & Associates LLP
Vijayawada
CA Inter
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CCI
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