A H.O. sent goods to its retail branches at 37.5% less than the catalogue price which is cost plus 100%. From the following particulars, prepare the necessary ledger accounts to show the profit made at H.O. and the branch assuring that goods are sold at catalogue price:
|
H.O. Rs |
B.O Rs |
|
|
Opening Stock |
||
|
At Cost |
1,600 |
– |
|
At Invoice Price |
– |
1,000 |
|
Purchases |
6,40,000 |
– |
|
Goods sent to Branch (at Invoice Price) |
3,96,000 |
– |
|
Goods returned to Supplier |
4,800 |
– |
|
Sales |
5,00,000 |
2,50,000 |
|
Goods destroyed by Fire (Retail Value) |
– |
3,200 |
|
Expenses |
1,01,500 |
50,750 |