Raj Ltd having H.O. in Chennai has a Branch at Kolkata where a complete set of books is maintained. All purchases are made at Chennai and stock required by the branch is invoiced to it by H.O. at selling price less 15%. The branch manager is entitled to a commission equal to one third of net profit earned by the branch on the basis of invoice price. The following are the respective trial balance of the H.O. and the branch as on Mar 31, 2009.
|
Particulars |
H O. |
Branch |
||
|
Dr. Rs |
Cr. Rs |
Dr. Rs |
Cr. Rs |
|
|
Capital |
47,100 |
|||
|
Sundry Debtors and Creditors |
44,850 |
12,300 |
3,775 |
3,075 |
|
Stock at the beginning at Cost: |
||||
|
H.O. |
62,075 |
|||
|
Stock at the beginning at |
18,135 |
18,135 |
||
|
Branch as invoiced |
||||
|
Salaries |
17,640 |
7,340 |
||
|
Sundry Expenses |
8,085 |
1,145 |
||
|
Branch Account |
11,615 |
|||
|
Cash on Hand and at Bank |
12,400 |
1,630 |
||
|
Furniture |
7,500 |
1,000 |
||
|
Sales |
2,05,080 |
84,100 |
||
|
3,33,865 |
3,33,865 |
87,175 |
87,175 |
|
The cost of price invoiced to Kolkata was Rs 40,950. The stock in hand at the end of the year at Chennai was valued at Rs 22,635 at cost and at Kolkata Rs 7,080 at cost and Rs 8,830 at invoice price. The difference between the adjustment accounts is due to remittance in transit from the branch to H.O. You are required to prepare the Trading and Profit and Lost Account for the year enduring on Mar 31, 2009 in Columnar Form and the Consolidated Balance Sheet at that date.