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SSC Financial and Cost Accounting P-1 QUESTION #9653
Question 1
For Wholesale Branch Accounting, if Branch Closing Stock at wholesale price = Rs. 63,000; Wholesale price = Cost + 40%; what is the unrealized profit to be reversed by the Head Office?
  • Rs. 18,000✔️
  • Rs. 25,200
  • Rs. 9,000
  • Rs. 45,000
Correct Answer Explanation
Unrealized profit = 63,000 × 40/140 = Rs. 18,000. The loading (difference between wholesale price and cost) embedded in unsold branch closing stock represents unrealized profit and must be reversed against income.