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+--- Thread: Need Help For Financial Accounting (MOD-B) (/thread-need-help-for-financial-accounting-mod-b)
Need Help For Financial Accounting (MOD-B) - Saadanwar - 08-02-2006
Salamz,
Iam puzzled about Stock Reserve A/C
and to calculate The loading on opening stock and unloading on closing stock
And the rate of GP on sales basis and on cost basis.
And how to use it to convert O/stock and CL/Stock on Invoice and at cost price
These are used in Special A/c's.
Iam studying from Mukherjee Vol1 and Vol2
And managed to solve question but still Its not very clear to me
I dont have much concepts about it.
Plz help me i will be very much thank full to u
- Breakevens - 08-02-2006
well...saad...u could say stock reserv account is the difference between the actual stock value and inoive value(when the consignment account is made on invoice values).by computing the difference between the orignal price and gross proftis margin(say 25% gross profit margin...then u will divide ---->total price(of closing st)/125 *25....this will simply give u the value u hav to incorporate in stock reserv account(welll finding it quite a bit difficult task to give u an e-teaching but all too often try to ma level).and dis period's closing will b the next yr's opening stock as well as the values of stock reserve account(as u would know).i know it would't b able to dat mch helpfull at all but ma communication level jss feels stifle here.khair u can ask nething and i could help u i will really b doinn dat.
i will personallly suggestt that if u are a std of ca jss do past papers and question no.7-i guess-14 of shuklaa....dat would b more dan enugh for u and will make u feel confident if u really know all the concepts of them,then.
- Saadanwar - 08-02-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Breakevens</i>
<br />well...saad...u could say stock reserv account is the difference between the actual stock value and inoive value(when the consignment account is made on invoice values).by computing the difference between the orignal price and gross proftis margin(say 25% gross profit margin...then u will divide ---->total price(of closing st)/125 *25....
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Thats the simple case.. i already know that..
Iam confused when No ratio is given
For example In Departmental A/c
And O/p stock is at Invoice price
And CL/Stock is at cost
And there is also abnormal Loss
and what we will do if there are 2 departments and one is transfering raw material to other at selling price.
To calcualte inrealized profit on unsold/closing stock confuses me
I have managed to get them soleved but had to see their solution
But still my concepts are not too much deep. i mean iam not fully satisfied.
- Breakevens - 08-07-2006
sorry saad i jss could not find time for all this infact i wz lil bit bz.kherr...
where u talked bout more than one departments tau one departments sale is the another departments purchase like if there are three departments A,B&c.A transfer all of its finished guds to B at 20%GP and B transfers its all gud to department C on 25%GP(i hope u will b aware of general enteries i.e in case of guds transfered by a{you will debit departmentB a/c and credit Department A} as the case with others as ell.now suppose that the value of closing stock is 1500 at department C.It consist of Two Loadings one when the goods transfered by department A to department B on 20%GP and and then they were processed in Department B and then transpered at department C on 25%GP margin.Now luk and think this 1500 value of closing stock consist of two loadings one is when the orignal price of this 1500 wz transfered from A to B and then from B to C.Now u will calculate the value of loading on closing stock by....
Closing stock Value in department C=1500
Loading on Cl.st. when it waz transfered
from B to C(as department B charges 25% margin)=1500/125*25
=300
Loading on cl.st. when it waz transfered
from A to B(as departemnt A charges 20% Gp margin= ?????
now luk the stock which has the value of 1500 in department C has the value in department B is (1500-300)=1200.now u will compute the Loading on it when it wz transfered from department A-B,
Loading when the closing stock of Rs.1500 wz
transfered from A to b is =1200/120*20
=200
Thus the total loading on cl. stock
at department C will b =loading of(A-B) + loading(B-c)
=200+300
=500
I dont know dats what u wanted to ask or sumthing else but at least i tried to clear dat and i will try to tell u the one u asked bout closing and opening stock now am getting short of time jss leaving neways..bye