Branch Account
price and the invoice price. The second method is to use the cost method, which calculates the
gross profit as the difference between the selling price and the actual cost of the goods.
1. Question number : Does AS2 apply to IPs? Yes, AS2 shall apply in IPs. This is the
reason we are calculating unrealized profit now. Henry can you teach me any particular
statement in Malayalam syllabus? Someone has written something in a syllabus book.
Are you fine tuned? Chaya, can anybody pronounce by using audio? I love you. Okay, in
Nick. Nick is you not allowed here now? Now is it allowed?
➔ Answer:- Yes, once again please. Once again, okay, come on, foreign! Thank you!
Thank you all right. All right so let us come to the question the same question. Closing
stock 17600 includes margin; the profit earned by head office which is not yet earned by
the head office because these goods are not yet sold. Head office should reverse its own
profit and this is the reason we are calculating the stock at 6600.
In closing stock, we reverse the margin but in opening a stock, we record the margin by
assuming that opening stock will ultimately be sold in the current year. This time, we will assume
that we will earn the 4500 and hence this 4500 is the earning of head office. CCC try to
understand better foreign, so we have reversed the entire IP but yes you are right. Foreign
branch is quite simple and it is very easy to understand, so this is the thing independent branch
domestic and foreign. So we are going to understand the foreign branch after five minutes
break. I'm not moving to stock end debtors method because stock indeckers method is very
huge okay and it needs the freshness actually to understand topic. Branch trial balance which is
in foreign currency needs to be converted into indian currency so that we can merge it and
make a consolidated financial statements consolidated balance sheet and panel of the entire
company including branch. Branch is integral foreign branch which is the integral part of head
office which is not different from head office so all the activities and business decisions of the
branch are dependent on head office.
price and the invoice price. The second method is to use the cost method, which calculates the
gross profit as the difference between the selling price and the actual cost of the goods.
1. Question number : Does AS2 apply to IPs? Yes, AS2 shall apply in IPs. This is the
reason we are calculating unrealized profit now. Henry can you teach me any particular
statement in Malayalam syllabus? Someone has written something in a syllabus book.
Are you fine tuned? Chaya, can anybody pronounce by using audio? I love you. Okay, in
Nick. Nick is you not allowed here now? Now is it allowed?
➔ Answer:- Yes, once again please. Once again, okay, come on, foreign! Thank you!
Thank you all right. All right so let us come to the question the same question. Closing
stock 17600 includes margin; the profit earned by head office which is not yet earned by
the head office because these goods are not yet sold. Head office should reverse its own
profit and this is the reason we are calculating the stock at 6600.
In closing stock, we reverse the margin but in opening a stock, we record the margin by
assuming that opening stock will ultimately be sold in the current year. This time, we will assume
that we will earn the 4500 and hence this 4500 is the earning of head office. CCC try to
understand better foreign, so we have reversed the entire IP but yes you are right. Foreign
branch is quite simple and it is very easy to understand, so this is the thing independent branch
domestic and foreign. So we are going to understand the foreign branch after five minutes
break. I'm not moving to stock end debtors method because stock indeckers method is very
huge okay and it needs the freshness actually to understand topic. Branch trial balance which is
in foreign currency needs to be converted into indian currency so that we can merge it and
make a consolidated financial statements consolidated balance sheet and panel of the entire
company including branch. Branch is integral foreign branch which is the integral part of head
office which is not different from head office so all the activities and business decisions of the
branch are dependent on head office.
