Question

accounting treatment for the difference of Dr & Cr column in branch stock account under stock & debtor method ​

Answer 1

firstly bal both the column. mostly both sides comes equal .

but if the diff is there then

if diff is on Dr side - it is the condition of surplus. & it's treatment is to show Dr side of the branch stock a/c as branch adj a/c. and amt will be the diff amt came.

if the diff is on Cr side - it is the condition of abnormal loss. & the diff came shall be shown in two parts

1st . branch p/l a/c on the credit side & the amt shall be shown in cost price.

2nd . branch adjustment a/c on the credit side & the amt shall be shown in loaded price(ie invoice price - cost price)

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