Mr. V.R. with H.O. at Delhi who carried on a retail trade opened a branch at Nagpur on Oct 1, 2009 where all sales were on credit basis. All cash collected was immediately remitted to H.O. All goods required by the branch were supplied from H.O. and were invoiced to the branch at 10% above cost. The following were the transactions:
|
Transaction |
Oct Rs |
Nov Rs |
Dec Rs |
|
Goods sent to Branch (Purchase Price) |
20,000 |
25,000 |
30,000 |
|
Sales as shown by the Branch Monthly Report |
19,000 |
21,000 |
27,500 |
|
Closing Debtors |
9,000 |
4,500 |
14,500 |
|
Returns to H.O. (Invoice Price to Branch) |
600 |
300 |
1,200 |
The stock of the goods held by the branch on Dec 31, 2009 amounted to Rs 26,700 at invoice price to branch. Record these transactions in the H.O. books. Show the branch gross profit for the three months ended on Dec 31, 2009.