Introduction In large businesses, companies often operate through multiple branches located in different cities or regions. Each branch maintains its own set of books, recording its daily transactions. At the end of the financial year, the balances of these branches must be incorporated into the Head Office books to prepare consolidated financial statements. This ensures […]
Why is Journal Sub-divided? The journal is the book of original entry where business transactions are first recorded. When a business grows, the number of transactions increases, and it becomes difficult to record every transaction in a single journal. To simplify and speed up the process, the journal is divided into smaller books based on
Items Recorded at Invoice Price in the Consignment Account In consignment accounting, goods are sent by the consignor to the consignee for the purpose of sale. These goods are often recorded at the invoice price rather than the actual cost price. The invoice price includes the cost plus a markup (known as loading) to ensure
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