Shimla H.O. supplies goods to its branch at Chennai at invoice price which is cost plus 50%. All cash received by the branch is remitted to Shimla and all branch expenses are paid by H.O. From the following particulars related to Chennai branch for the year 2009, prepare (i) Branch Account, (ii) Branch Stock Account, (iii) Branch Debtors Account, (iv) Branch Adjustment Account and (v) Branch Expenses Account to ascertain Gross Profit and Net Profit made by the Branch:
|
Rs |
Rs |
||
|
Stock with Branch on Jan 1, 2009 |
30,000 |
Allowance to Customers |
1,000 |
|
Branch Debtors on Jan 1,2009 |
6,000 |
off Selling Price |
|
|
Petty Cash Balance on Jan 1, 2009 |
50 |
(already adjusted on invoicing) |
|
|
Goods received from H.O. |
93,000 |
Expenses (Cash paid by H.0.) |
|
|
(at Invoice Price) |
Rent |
1,200 |
|
|
Goods returned to HO. |
1,500 |
Salaries |
12,000 |
|
Credit Sales Less Returns |
42,000 |
Petty Cash |
500 |
|
Cash received from Debtors |
45,000 |
Stock with Branch on Dec |
|
|
Discount allowed to Debtors |
1,200 |
31,2009 at Invoice Price |
27,000 |
|
Cash Sales |
52,000 |
||
|
Petty Cash balance on Dec 31, 2009 |
50 |
Note: Allowance to customers may be treated as sales promotional expense.