Question

department A transfer goods to department B and makes profit of 20% on selling price. department B's closing stock includes rs. 30000 goods transfer by A. Find stock reserve.

(WITH EXPLANATION)​

Answer 1

Answer:

6000

Explanation:

since B still has unsold goods of 30000 transferred by dept A, the unrealised departmental profit needs to be reversed

unrealised profit = 30000*20%

= 6000