Question

the adjusting entries for different between invoice price and the cost price of good are shown in?​

Answer 1

Answer:

The Consignor, instead of sending the goods on consignment at cost price, may send it at a price higher than the cost price. This price is known as Invoice Price or Selling Price. The difference between the cost price and the invoice price of goods is known as loading or the higher price over the cost.

Answer 2

Concept :

The difference between the invoice price and cost price of goods is known as loading or the higher price over the cost.

Explanation :

This is done with a view to keep the profits on consignment secret.The Consignor, instead of sending the goods on consignment at cost price, may send it at a price higher than the cost price. This price is known as Invoice Price or Selling Price.The reason for consigning the goods at invoice price is to keep the profit undisclosed to the consignee. The consignor does not send the goods at cost, instead he sends the goods at invoice price above the cost price) to keep the profits earned by him undisclosed.

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