Rainbow & Co. a retail shop at Agra under the supervision of a manager. The ratio of gross profit sales is constant at 25% throughout the year to March 31, 2009.
Branch manager is entitled to a commission of 10% of profit earned by his branch, calculated before charging his commission but subject to a deduction from such commission equal to 25% of any ascertained deficiency of branch stock. All goods were supplied to the branch by the H.O.
From the following information, show the Agra Branch A/c for the year ending Mar 31, 2008–2009.
|
Rs |
|
|
Stock on Apr 1, 2008 (at cost) |
18,684 |
|
Goods sent to Branch (at cost) |
72,420 |
|
Sales |
90,320 |
|
Manager’s Commission paid on Account |
600 |
|
Chargeable Expenses |
12,280 |
|
Stock at the End (at Selling Price) |
30,832 |