. Raj having a H.O. at Chennai, opened several branches at Mumbai, Delhi, Kolkata and Cochin. All the purchasing and administration is done at the H.O. Branches were also allowed to purchase locally. Branches sell both for cash and on credit terms, but all invoices for credit sales are invoices from Chennai and payments from credit customers received there. The branches are expected to achieve a profit of 50% on cost price. The following details relate to the Delhi Branch for the first six months of 2009.
|
Rs |
|
|
Goods as on Jan 1, 2009 at branch at Cost Price |
28,000 |
|
Debtors as on Jan 1, 2009 at branch |
9,000 |
|
Goods received by the branch at Selling Price |
1,80,000 |
|
Cash Sales |
1,02,000 |
|
Credit Sales |
60,000 |
|
Transfer from other branches to Delhi branch at Selling Price |
12,000 |
|
Transfer to other branches to Delhi branch at Selling Price |
21,000 |
|
Goods returned to H.O. at Selling Price |
6,000 |
|
Cash received by H.O. from Debtors |
53,000 |
|
Bad Debts written off |
2,000 |
|
Goods returned by Credit Customers to Branch |
2,400 |
|
Goods returned by Credit Customers to H.O. |
1,200 |
|
Goods purchased by Delhi Branch from the Local Suppliers at cost |
15,000 |
|
Expenses at the Branch |
7,500 |
|
Stock as on June 30, 2009 at Delhi Branch |
|
|
From H.O. at Selling Price |
45,000 |
|
From Goods purchased locally |
3,000 |
Further Information
- Goods amounting to Rs 6,000 at cost to H.O. were in transit.
- On Jan 1, 2009, the branch had furniture and fixtures at a book value of Rs 20,000. Depreciation at 10% is to be provided per annum.
- Goods purchased locally were sold at a profit of 25% on sale price.
Prepare Branch Stock Account, Branch Debtors Account and Delhi Branch Account.