Match each ledger account used under the dependent branch invoice price system with its primary accounting function.
- Branch Stock AccountRecords physical movement of merchandise at selling price to maintain stock control and reveal inventory shortages or surpluses.
- Branch Stock Adjustment AccountAccumulates mark-up loadings on goods sent and stock adjustments to determine the actual gross profit of the branch.
- Stock Reserve AccountHolds the provision for unrealized profit contained in unsold branch inventory at the end of the accounting period.
- Goods Sent to Branch AccountTracks merchandise dispatched from head office at invoice price before transferring the net cost element to the Trading Account.
Cevap
Branch Stock Account matches with inventory control at selling price; Branch Stock Adjustment Account matches with gross profit calculation via mark-up accumulation; Stock Reserve Account matches with storing unrealized profit on closing inventory; Goods Sent to Branch Account matches with tracking merchandise dispatched from head office.
Under the invoice price method for dependent branches, ledger accounts fulfill distinct operational and reporting roles: Branch Stock Account tracks inventory at selling price to detect shortages; Branch Stock Adjustment Account accumulates profit mark-ups to calculate gross profit; Stock Reserve Account eliminates unrealized profit from closing stock; and Goods Sent to Branch Account tracks head office merchandise dispatches.
Adım Adım Çözüm
Anahtar Kavram
Accounting for Dependent Branches at Selling / Invoice Price
Tahmini Süre:1m 30s