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will charge its own load. Thus, department A may transfer goods to department B at 120 (cost, A and B. Stock reserve of department C will be equal to the total profits of department A and department, Bincluded in the closing stock of department C., lithere are more than two departments, say 3 departments A, B, and C, each transferring department, will value its closing stock at its cost i.e. 156 which includes the load charged by both departments, + its load @ 20% of7 100 i.e. { 20); department B will transfer to department C at 156 (its, cost of120 + its load on its cost, say @ 30% on its cost i.e. 30% of 120 = 36). Department C, 255, Transfer value of stock x, Stock Reserve, Profit included in transfer price, Transfer pricc, 3 MANY DEPARTMENTS, 100, O6 ENTRY FOR STOCK RESERVE, The entry to, Profit & Loss Account, To Stock Reserve A/c, Deing the reserve created for unrealised profits included in closing stock), adjust the stock reserve is made by the concern in the general P & L a/c as follow :, Dr., 3.7 BALANCE SHEET, The relevant part of the Balance Sheet will appear as follows :, Balance Sheet as at ..., eni cT, Liabilities, Assets, Current Assets :, Closing stock, (transfer value), Less : stock reserve, (load), XX, XX, Closing Stock (cost), XXX, %3D, Next Year, In the beginning of the next year, the above entry is reversed as follows:, Dr., Stock Reserve A/c, To Profit & Loss A/c, WORKSHEET 2: DEPARTMENTAL FINAL ACCOUNTS, angeb moi bti efitong 1e v810, Departmental Trading and Profit & Loss Account, etigsb mont bit eeot tet oT, A tnemhsqeb Cr., 8inemhegah, Dr., XXXx, Total, Basis, Dept., Dept., Total, Basis, Dept., Dept., B, A, XXX, XXXX, XXXX By Sales, lo XXX2n XXX, XXX, To Opening stock, To Purchases, Less: Purchase, Less: Returns, (xxx), (xxx), (xxxx), XXXX, XXX, By Transferred, to dept. A, By Cost of, goods lost, By Cost of goods, damaged, XXXX By Closing, stocks, bieg a msrd, Nil, XXX, XXXX, (xxx), 19n, (xxx), (ххх), Returns, To Received from, Dept. B, To Purchase, XXX00 XX22XXXX, bepen, teXXxl XXX, Nil, XXXX, XXX, XXXX, Ba XXXX, XXX, expenses, To Direct Wages, To Lighting, Power, To Repairs work-, shop costs, To Stores dept., XXX, XXX, XXX, XXX, XXX, XXXX, XXX, XXXX, XXX, XXXX, siqso obt ltoJel oT, 10, XXX, XXXX, XXX, XXKX, letor, XXXX, costs, XXX, XXX, To Other factory, Scanned By Scanner Go, expenses, XXXX, XXX, XXX