Sundry matters-financial statement , Financial Accounting

Assignment Help:

Sundry Matters

1) The accounting system is also appropriate for departmental accounts.

2) The branch stock account is a practical means of controlling stock at the branch.  Supervisors can quickly ascertain the selling price of stock at a branch and compare this with the balance shown in the head office books. Such spot checks will bring to light:

  • Normal differences e.g. wastage, evaporation, minor miscalculation of selling price, or errors in stock taking;
  • Abnormal differences e.g. goods or cash stolen.

 

3) This method prevents branch staff from knowing the cost of goods being sold and preserves secrecy with regard to profits.

4) Ascertaining the percentage or fraction to deduct from invoice price may cause some students difficulty.  No doubt it is appreciated that the percentage to be deducted from the selling price is not the same as that which is added to cost, e.g. If 33 1/3% is added to cost to arrive at invoice price then 25% must be deducted from selling price to get back to cost.


Related Discussions:- Sundry matters-financial statement

Analysis of the financial results, An introduction to the company, which fo...

An introduction to the company, which focuses on the context in which the company operates: • Ownership, development and location; • Resources, processes and employment; •

How much would the income from operation, Materials used by Company X in pr...

Materials used by Company X in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. But the same materials are available from Di

Asset Allocation, In January 2013, Mitzu Co. pays $2,600,000 for a tract of...

In January 2013, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building I and build a new store in its place. Building 2 will be a co

Which statements is correct, In its first month in business, Jones, Inc. so...

In its first month in business, Jones, Inc. sold merchandise to customers on account for $119,800. It collected $72,000 on those sales during the first month and recorded Revenue f

State the relationship between return and risk, State the relationship betw...

State the relationship between return and risk This relationship between return and risk has significant implications for setting financial objectives for a business. Owners wil

The petition-bankruptcy, THE PETITION Petition by debtor : If the de...

THE PETITION Petition by debtor : If the debtor presents his own petition, a receiving order is made at once without a court hearing and an adjudication order may also be ma

Determine the net present value for the project, An investment project requ...

An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5 years. The firm's cost of capital

Instantaneous standard deviation, The current stock price of International ...

The current stock price of International Wood is $69 and the stock does not pay dividends. The instantaneous risk free rate of return is 10%. The instantaneous standard deviation

Relevant cash flows , The City of Miami must replace a number of its concre...

The City of Miami must replace a number of its concrete mixer trucks with new trucks. It has received two bids and has evaluated closely the performance characteristics of the seve

Need answer, Suppose a company will issue new 25-year debt with a par value...

Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The tax rate is 40%. If the flotation cost is 3% of the issue proce

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd