Kolkata H.O. of a company invoices goods to its Nagpur Branch at cost plus 20%. The branch purchases goods from local sources also for which payments are made by the H.O. All cash collected by the branch is banked on the same day to the credit of the H.O. except for a petty cash account maintained by the branch for which periodic transfers are made from the H.O.
From the following particulars, show branch account as maintained by the H.O. showing the profit for the year ended Mar 31, 2009.
|
Imprest Cash: |
Rs |
|
On Apr 1, 2008 |
4,000 |
|
On Mar 31, 2009 |
3,700 |
|
Debtors on Apr 1, 2008 |
50,000 |
|
Stock on Apr 1, 2008: |
|
|
(i) Transferred from H.O. at Invoice Price |
48,000 |
|
(ii) Direct purchases made by the Branch |
32,000 |
|
During 2008–2009: |
Rs |
|
Cash Sales |
90,000 |
|
Credit Sales |
2,60,000 |
|
Direct Purchases made by the Branch |
90,000 |
|
Goods returned by Customers |
6,000 |
|
Goods sent to Branch from H.O. at Invoice Price |
1,20,000 |
|
Goods transferred to Branch from H.O. for petty Cash expenses |
5,000 |
|
Bad Debts |
2,000 |
|
Discount allowed to Customers |
4,000 |
|
Cash received from Customer |
2,50,000 |
|
Branch Expenses |
60,000 |
|
Stock on Mar 31, 2009: |
|
|
(i) Transferred from H.O. at Invoice Price |
36,000 |
|
(ii) Direct Purchases made by the Branch |
24,000 |