What is unrealised profit in departmental accounting
Answers
Answer:
Profit whivh has been made vut not get realized through a transaction suxh as stock which has risen in value but is still being held. Unrealized profits are usually not taxable.
Explanation:
Unrealized profit is a potential profit that is on paper, arising from any kind of investment.
Unrealized profit includes unsold stock toward the end of the bookkeeping period is disposed of by making a fitting stock save by charging the joined Profit. what's more Loss Account. How much stock is saved will be determined as Transfer cost of unsold stock ×Profit remembered for move cost. Such unrealized profits emerge when one gathering organization offers great to another gathering organization and that merchandise has not been sold on remotely before the year's over. They are along these lines known as unrealized profits available in stock.