Question

Under Stock-Debtors system, branch stock account shows​

Answer 1

ANSWER :

★ Closing Stock of the branch at invoice price

• Under Stock-Debtors system, branch stock account shows the closing Stock of the branch at invoice price at the end of the year.

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KNOW MORE :

❒ Stock and Debtors Method :-

• ✎ Stock and Debtors Method is a method of branch accounting which is followed for large size branches where goods are sent to the branches at selling price or at invoice price.

• ✎ Under Stock and Debtors Method, Branch Stock Account, Goods Sent to Branch Account, Branch Debtors Account, Branch Cash Account, Branch Expenses Account, Branch Fixed Assets Account, Branch Adjustment Account and Branch Profit and Loss Account are prepared or maintained with a view to ascertain the profit or loss of the branch and in order to exercise control over branch stock and expenses.

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❒ Branch Stock Account :-

• ✎ An account prepared under Stock-Debtors System of branch accounting is Branch Stock Account. This account is a replica of the goods account and this account records the transactions in regard to stock in the branch at invoice price.

• ✎ In the debit side of Branch Stock Account records the inflow of stock into the branch and in the credit side records its outflow from Branch.

• ✎ At the end of an accounting year, Branch Stock Account shows the closing stock of the branch at invoice price.

• ✎ Branch Stock Account helps to exercise control over the Branch Stock.

Answer 2

Answer:

Closing Stock of the branch at invoice price

Under Stock-Debtors system, branch stock account shows the closing Stock of the branch at invoice price at the end of the year.

Explanation:

❒ Stock and Debtors Method :-

✎ Stock and Debtors Method is a method of branch accounting which is followed for large size branches where goods are sent to the branches at selling price or at invoice price.

✎ Under Stock and Debtors Method, Branch Stock Account, Goods Sent to Branch Account, Branch Debtors Account, Branch Cash Account, Branch Expenses Account, Branch Fixed Assets Account, Branch Adjustment Account and Branch Profit and Loss Account are prepared or maintained with a view to ascertain the profit or loss of the branch and in order to exercise control over branch stock and expenses.

❒ Branch Stock Account :-

✎ An account prepared under Stock-Debtors System of branch accounting is Branch Stock Account. This account is a replica of the goods account and this account records the transactions in regard to stock in the branch at invoice price.

✎ In the debit side of Branch Stock Account records the inflow of stock into the branch and in the credit side records its outflow from Branch.

✎ At the end of an accounting year, Branch Stock Account shows the closing stock of the branch at invoice price.

✎ Branch Stock Account helps to exercise control over the Branch Stock.