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

Liquidity ratio, For each of the ratios listed below, indicate by the appro...

For each of the ratios listed below, indicate by the appropriate code letter, whether itis a liquidity ratio, a profitability ratio, or a solvency ratio. Code: L=Liquidity rati

Accounts required and their purpose-branches, Accounts required and their p...

Accounts required and their purpose a. Branch Current Account (Head Office Books) Records all transactions branch and head office; The balance represents the investmen

Foreing branches-branches, FOREING BRANCHES The head office my set up a b...

FOREING BRANCHES The head office my set up a branch in a foreign  country. IAS 21 requires that the results of that  foreign branch to be translated into the local currency for t

Prepare tally & co.''s journal, Tally & Co. incurred a pretax operating los...

Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for both financial reporting and income tax purposes. However, it expects to be profitable

Calculate the optimal allocation of stocks, A) Suppose you have two stocks ...

A) Suppose you have two stocks (A and B) in your portfolio, worth $400,000 and $600,000 respectively. The annual volatility is 0.30 and 0.35 respectively. The correlation between t

Trustees remuneration-trusts laws and accounts, Trustees remuneration A...

Trustees remuneration A trustee may not receive remuneration except: 1. By order of the court, if the trust is very onerous or the services of the trustee very valuable;

EDP, For what EDP is using in accounting

For what EDP is using in accounting

Deeds of arrangement-bankruptcy and liquidation, DEEDS OF ARRANGEMENT (D of...

DEEDS OF ARRANGEMENT (D of A) 1. Nature of a D of A : To avoid the expense and delay involved in a bankruptcy, a debtor in trouble may make a private arrangement with the

As an asset-survivorship policy, As an asset The argument for this stat...

As an asset The argument for this statement is that the survivorship policy is an investment because eventually the partnership will receive either the surrender value or the s

Termination of appointments-trust laws, TERMINATION OF APPOINTMENTS A tru...

TERMINATION OF APPOINTMENTS A trustee may cease to hold office in the following ways: (a) Disclaimer : At any time before acceptance of the trusts. (b) Retirement : Eith

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