Swastika Ltd. of Shimla has a branch at Cochin. Goods are invoiced to the branch at cost plus 25%. The branch does not maintain account books and all collection at the branch are remitted to H.O. The expenses of the branch are remitted to H.O. The expenses of the branch are reimbursed by the office. From the following particulars, prepare the branch account in the books of H.O. for six months ending on Sep 30, 2008.
|
Apr 1, 2008 |
Rs |
Rs |
|
|
Opening Stock |
27,500 |
Bills receivable received |
7,500 |
|
From customers at branch |
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|
Opening Debtors |
7,500 |
Bad Debts |
200 |
|
Opening Furniture |
6,000 |
Trade discount to Customers |
6,000 |
|
(already taken into account while invoicing) |
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|
Opening Petty Cash |
250 |
||
|
Transactions for six months |
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|
Goods received from |
1,12,500 |
Goods sent to Branch on |
750 |
|
H.0 at Cost |
Sep 28, 2008 but received by |
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|
Branch on Oct 7. 2008 |
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|
Cash Sales |
97,500 |
||
|
Credit Sales |
40,000 |
Cash sent to Branch for expenses |
5,250 |
|
Goods returned to H.O. |
6,375 |
Cash Discount allowed to |
400 |
|
Customers |
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|
Cash received from Debtors |
25,000 |
Balances on Sep 30, 2008 |
|
|
Sales Return by Customers to |
250 |
Stock in Hand |
2,800 |
|
Branch |
Debtors |
? |
|
|
Petty Cash |
250 |
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|
Depreciate Furniture at 20 % p.a. |
Branch manager is entitled to a commission of 5% of profit of the branch after charging such commission.