Vasudev, a Chennai trader opens a new branch in Trichy which trades independently of the H.O. The transactions of the branch for the year ended Mar 31, 2009 are as follows:

Rs

Goods Supplied by H.O.

40,000

Purchases from Outsides:

Credit:

31,000

Cash:

6,000

37,000

Sales Credit:

50,000

Cash:

9,200

59,200

Cash received from Customers

60,800

Cash paid to Creditors

28,400

Expenses paid by the Branch

17,900

Furniture and Fixtures purchased by Branch on Credit

7,000

Cash received from H.O. initially

8,000

Remittances to H.O.

22,000

Additional Information

  1. The accounts of the branch fixed assets are maintained at H.O. Books
  2. Write off depreciation on furniture @ 5% p.a.
  3. The branch remitted on Mar 29, 2009 Rs 4,000 was received by the H.O. on Apr 2, 2009
  4. The branch closing stock is valued at Rs 24,000.

You are required to prepare the Trichy Branch Trading and Profit and Loss Account and the Trichy Branch Account in the H.O. Books and H.O. Account in the books of the Branch after incorporation of the branch Trial Balance.