Guber Ltd. has a H.O. at Chennai and retail branches across the country which are supplied goods from the H.O. at 20% profit on sale price. Accounts are kept at H.O. from where all expenses (except petty) are paid. Petty expenses are paid by the branches that are allowed to maintain petty cash balance of Rs 600 on Imp rest system. From the following balances, as shown by the books, prepare branch account.
|
Balances on Jan 1, 2008 |
Rs |
|
Petty Cash in Hand at Branch |
600 |
|
Stock in Hand at Branch at Sales Price |
40,000 |
|
Sundry Debtors |
8,000 |
|
Sundry Creditors |
2,400 |
|
Furniture |
16,000 |
|
Rent paid up to Mar 31, 2008 |
600 |
|
Transactions during the year 2008: |
|
|
Goods sent to Branch (Less: return) |
2,08,000 |
|
Cash Sales at Branch |
1,60,000 |
|
Credit Sales at Branch |
90,000 |
|
Allowances to Debtors |
1,000 |
|
Cash received from Customers |
80,000 |
|
Bad debts to be written off |
400 |
|
Cash Purchases by the Branch (with permission) |
21,000 |
|
Cash paid to Creditors |
16,000 |
|
Creditors at the end |
6,000 |
|
Payment by Branch Petty Expenses |
360 |
|
Payment made by H.O. |
|
|
Rent for one year (paid) on Apr 1, 2008 |
3,600 |
|
Salaries |
4,000 |
|
Insurance paid for the year ending Mar 31, 2009 |
720 |
|
Balance on Dec 31, 2008 |
|
|
Stock at Cost |
60,000 |
|
Write off 10% Depreciation on Furniture |