How to disclose branch transfer and sales to unit II in sales in balance sheet

[deepak VORA]

We are a pvt ltd company.

We make sales of semi finished goods to Unit II by paying excise and the same are finished at UNIT II and dispatched directly to the buyers.

When we merge balance sheet of unit 1 and unit 2 should we add gross sales of unit 1 and gross sale of unit 2 and similarly add purchases of unit 1 and unit 2.

Please guide.

[Ganeshan Kalyani]

Sir, it is adviaable to consult your internal auditor or senior in your organisation. This is because in this Forum general queries is solved whereas yours is a specific one. Thanks.

[KASTURI SETHI]

Rightly advised by Sh.Ganeshan Kalyani, Sir.

AI Summary

Inter-unit sales disclosure: determine whether to aggregate Unit I and Unit II sales in merged balance sheet. Question whether sales and purchases between two units of the same private company should be aggregated in a merged balance sheet where Unit I transfers semi finished goods to Unit II (excise paid), Unit II completes processing and dispatches directly to customers; forum replies advise consulting the internal auditor or senior accounting staff as the issue depends on accounting policies and consolidation/disclosure requirements.