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SSC Financial and Cost Accounting P-1 QUESTION #9647
Question 1
Head Office sends goods to a dependent branch at pro-forma invoice price of Rs. 40,320 (being cost + 20%). What is the amount of 'loading' to be reversed in the Branch Account?
  • Rs. 8,064
  • Rs. 6,720✔️
  • Rs. 6,400
  • Rs. 7,200
Correct Answer Explanation
Loading = Pro-forma invoice price × (loading% / (100 + loading%)) = 40,320 × 20/120 = Rs. 6,720. The loading is the excess of pro-forma invoice price over cost, reversed to reflect goods at cost in the head office books.