Cost price
Fixed percentage on cost
Selling price
Invoice price
Correct answer is D
Invoice Price Method Branch Accounting. In branch accounting, head office sends the goods to branch on the invoice price instead of cost price because with this, company can hide his profit margin from branch employees. In the invoice price, there are two prices will be included on is cost price and second is profit %.
In the head office ledger, the value of goods sent to the branch are
Debited to the head office current account
Debited to the branch current account
Credited to the head office current account
Credited to the branch current account
Correct answer is B
Goods sent to branch is recorded at the debit side of the branch stock account. Goods returned to head office and closing stock is shown at the credit side of this account. The excess of debit over credit is shortage. The excess of credit over debit is surplus.
#10,000
#42,000
#45,000
#52,000
Correct answer is D
30,000 + 7000 + 8000 +10,000 = 55000
55,000 - 3000 = 52,000
The excess revenue over expenditure is charged to
Profit and loss
Revenue account
Accumulated fund
Income and expenditure acccount
Correct answer is C
An accumulated fund is the capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures and there is a budgetary surplus.
The main advantage of a departmental account is that its
Expenses are shared
Gross profit is computed
Net profit is computed
Balance sheet is obtained
Correct answer is B
The most significant advantages of departmental accounts are: Individual results of each department are known which helps to compare the performances among all the departments, i.e., the trading results can be compared. Departmental accounts help to understand or locate the success, failure, rates of profit, etc.