TY B.Com.

Sub: Advanced Accounting – Sem VI

Topic : BRANCH ACCOUNT

[ 1 ] Samrat Oil Mills, Pune has its branch at Mumbai. Goods are invoiced to the branch
by head Office at cost Price. The Branch sells for cash as well as on credit. Branch expenses
are paid by Head Office. Prepare Branch Stock Account, Branch Debtors Account, Branch
Expenses A/c, Branch Petty Cash Account, Branch P&L Account from the following
particulars. [14]

Particulars Rs.
Opening balance as on 1.4.2016 i) Stock of Goods 42,000
ii) Debtor’s 75,600
iii) Petty Cash 1,200
Goods from Head Office 1,56,000
Goods returned by branch 6,000
Cash Turnover 1,05,000
Cash received from Debtors 1,71,000
Sales to Credit Customers 1,70,400
Allowances to Customers 1,200
Discount allowed to Branch Debtors 9,000
Bad Debts Written Off 3,000
Salaries & Wages 36,000
Advertisement & Sales Promotion expenses 6,000
Rent & Rates 7,200
Cash sent to branch for petty expenses 2,400
Stock 31.3.2017 39,000
Closing balances as on 31.3.2017 i) Debtors 58,800
ii) Petty cash 600
Goods returned by customers to Branch 3,000
[ Oct.16] [ Apr 16 E] April 2018 Regular

[ 2 ] Laxmi Ltd., Mumbai has branch at Pune to which goods are supplied at cost plus
20% profit. Prepare Branch Stock Account, Branch Debtors Account, Branch Petty Cash
Account, Branch Account and Branch Adjustment Account in the books of Millennium Ltd.
Head Office for the year 2014-15.
Particulars Rs.
Opening balance as on 1.4.2014 i) Stock of Goods 42,000
ii) Debtor’s 75,600
iii) Petty Cash 1,200
Goods invoiced to branch 2,52,000
Goods returned by branch 6,000
Cash Turnover 1,05,000
Sales to Credit Customers 1,70,400
Surplus in Stock 23,400
Cash received from Debtors 1,71,000
Allowances to Customers 1,200
Discount allowed to Branch Debtors 9,000
Bad Debts Written Off 3,000
Return from customers 3,000
Advertisement 6,000
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Sub: Advanced Accounting – Sem VI
Salaries 20,000
Rent (Including prepaid for 2015-16 Rs. 800) 8,000
Cash sent to branch for petty expenses 2,400
Commission paid 6,000
Closing balances as on 31.3.2015 i) Debtors 58,800
ii) Petty cash 600
[ Oct.16] [ Apr 16 E][20]April 2018 External

[ 3 ] A Ltd. Has a branch at Pune, goods are invoiced at cost + 50%, Branch remits all cash
received to the head office and all expenses are met by Head Office. The following
particulars are available. [14]
Particulars Rs.
Stock on 1.4.2015 (invoice price) 37,200
Debtors on 1.4.2015 27,200
Goods invoiced to branch (invoice price) 2,12,400
Sales at Branch
Cash sales 1,00,040
Credit Sales 1,24,000
Goods returned by debtors 4,800
Cash collected from debtors 1,21,600
Goods returned by branch to Head Off.(invoiced price) 6,000
Discount allowed to customers 800
Expenses at Branch
Salary 12,000
Rent 8,000
Office Expenses 1,600
Sundry Expenses 2,000

You are required to prepare Branch Stock A/c, Branch Detors A/c, Branch Expenses
A/c, Branch Adjustment A/c and Branch Profit and Loss A/c. Oct.2017 Regular

[ 4 ] From the following details, prepare necessary accounts of Pune Branch under stock
and Debtors system in the books of Head Office at Mumbai on 1.4.2014 the following
balances appeared in the Head Office Ledger;
[20]
Branch Debtors A/c Rs. 15,000
Branch Stock A/c (at selling price) Rs. 6,000
Branch adjustment A/c (credit) Rs. 1,500
The following were the transactions of the branch during the year ended 31.3.2015
Cash sales hrs. 8,000 ; Credit sales Rs. 1,70,000
Goods from Head Office at selling price Rs. 2,00,000
Cash received from branch debtors Rs. 1,60,000
Discount allowed to branch debtors Rs. 4,000
Branch expenses paid by Head Office Rs. 27,500
The stock at the branch on 31.3.2015 Rs. 24,000 at selling price.
Preapre necessary Ledger accounts in the books of Head Office (including Branch
profit & Loss A/c) according to stock & Debtors system. Goods are invoiced to Branch at
cost plus 33 1/3 %. Oct.2017 External

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Sub: Advanced Accounting – Sem VI
[ 5 ] M/s Gajanan Traders Pune has a branch at Nashik. The goods are invoiced to branch so as to
show a profit of 30% on Invoice price, under strict instructions of selling goods only at
invoice price. The following are the particulars relating to branch :
Particulars Rs.
Stock on 1.1.2016 (Invoice Price) 12,000
Debtors on 1.1.2016 6,200
Goods sent to Branch (at invoice price) 35,000
Goods returned by Branch (at invoice price) 1,000
Credit sales made during the year 21,000
Cash Sales during the year 20,000
Goods returned by customers 600
Cash from Debtors 19,000
Discount allowed to Debtors 300
Allowances to Debtors 200
Bad Debts in the year 600
Cheque sent to Branch for : Salaries Rs. 3,300
Rent and Rates Rs. 2,000 5,300
Shortage of goods at branch 400
Ascertain the profit or loss made by the branch by preparing : (1) Branch Stock A/c,
(2) Branch Debtors A/c (3) Branch Expenses A/c and (4) Branch Adjustments A/c
[April 2017 R] [ Apr16 R] [April,15]

[ 6 ] Yashashree Ltd., Pune has a branch at Belgaum to which goods are invoiced so as to
have 10% bearing on invoice price. The Balgaum Branch has sent the following figures for
the year ended 2015-16 [20]

Particulars Rs.
Stock on 1.4.2015 15,000
Stock on 31.3.2015 13,900
Debtors on 1.4.2015 26,200
Debtors on 31.3.2016 33,100
Goods received from Head Office 80,800
Goods returned to Head Office 700
Cash Sales 31,400
Credit Sales 60,000
Allowances to customers 580
Returns from Customers 200
Discount allowed to customers 2,400
Bad Debts 600
Rent 1,800
Salaries 6,000
General Charges 1,300
Rent due but not paid for 2015- 100
16
Miscellaneous income 660

All items of stock are at invoice price. All expenses are paid by head office and all
cash received is daily banked into head office account.
You are required to prepare i) Branch Stock a/c ii) Branch Debtors A/c iii) Branch
expenses A/c, iv) Branch Adj., v) Branch Profit & Loss A/c [April 2017 External]

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Sub: Advanced Accounting – Sem VI

[ 7 ] Deluxe Corp. of Banglore supplies goods to its Branch at Mysore at cost. Mysore
Branch sells goods for cash and on credit and remits cash to the head office promptly All
branch expenses are paid by the head office by cheques :
From the following particulars for the year ended 31 March, 2013 prepare accounts in the
st

books of Deluxe Corp. of Banglalore. Rs.

Stock at Branch (1 April, 2012)
st
12,000
Branch Debtors (1st April, 2012) 16,000
Goods send to Branch during the year (2012-13) 90,000
Cash sales at Branch 44,000
Credit Sales at Branch 1,14,000
Returns from customers 8,000
Collection from Debtors 84,000
Discount Allowed 7,000
Bad debts written off 5,000

Cheques sent by Head Office for expenses :

Salaries Rs. 10,000
Rent Rs. 5,000
Petty Expenses Rs. 1,000 16,000
Stock at Branch (31.3.2013) 18,000
[ Oct.13]

[ 8 ] Ratnamani Ltd. Nagpur has Branch at Cochin to which goods are supplied at fixed
selling price which is 25% on cost. All expenses of the branch are met by the head Office
only. From the following transactions relating to Cochin Branch for the year 2010-11
Prepare Branch A/c, Branch Trading and P& L A/c for the year ended 31.3.2011 in the books
of Head Office.
Particulars Rs.
Stock 1-4-2010 (Invoice Price) 60,000
Branch Debtors 1-4-2010 32,000
Petty Cash 1-4-2010 800
Furniture 1-4-2010 20,000
Goods send by Head Office (Invoice Price) 5,00,000
Cheques sent for Branch Expenses :
Petty Cash 2,400
Salaries & Wages 20,000
Rent 12,000 34,400
Goods returned to head Office at Invoice Price 4,000
Cash Sales 52,000
Cash collected from Debtors 3,20,000
Credit Sales 3,48,000
Bad Debts written off 4,000
Discount allowed 3,200
Credit Sales returned 4,800
Goods sent by Head Office at Invoice Price
But not received by the branch upto 20,000
31.3.2011
Shortage in goods at Invoice Price 800
Branch Debtors 31.3.2011 48,000

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Sub: Advanced Accounting – Sem VI
Petty Cash 31.3.2011 1,600
Stock on 31.3.2011 (Invoice Price) 1,40,000
Provide depreciation on Furniture 10% p.a. [Oct.2011]

[ 9 ] The head office has branch at Baroda. Goods are sent by the Head Office to the
Branch marked at selling price which is cost plus 25%. All the expenses of the Branch are
paid by the H. O. All cash collected by the Branch is remitted daily to the Head Office.
From the following, prepare Branch Trading and Profit & Loss A/c in the books of the Head
Office. Also give a Branch A/c as it would appear in the Head Office.

Particulars Rs.
Debtors on 1-4-2008 1,80,000
Debtors on 31-3-2009 2,10,000
Inventory at Invoice price on 1-4-2008 2,40,000
Inventory at Invoice price on 31-3- 2,55,000
2009
Cash sales during the year 9,00,000
Total Cash remitted to H.O. 19,05,000
Goods sent to Branch at Invoice Price 21,00,000
Goods return to Head Office 75,000
Cash sent to Branch for :
Rent : 60,000
Salaries : 90,000 1,50,000
Discount allowed to Debtors 22,500
Bad Debts written off 15,000
Spoilage of goods 30,000
Return goods by Debtors to Branch 7,500
[Oct.2010]
[ 10 ] Prachi Ltd., Poona has a branch at Nashik to which goods are sent at invoice price
which is fixed at profit of 20% on sales, under the instruction of selling goods only at invoice
price. The following are the particular about the branch transaction:

Rs.
Stock (at invoice price) on 1 April, 2008
st
5, 000
Branch Debtors on 1 April, 2008
st
2,000
Goods sent to Branch 40,000
Total sales 43, 600
Cash sales 32, 000
Cash received from debtors 8, 400
Cheques sent to Branch for: Rent 1, 200
Salaries 3, 600
Sundry Expenses 300
Discount allowed to debtors 150
Bad debts 250
Stock (at Invoice price) on 31 March, 2009
st
2, 100
Calculate profit made by the Branch. A/cs are to be opened on “stock and Debtors” system.
[ Oct. 2009]
[ 11 ] A Ltd. Has a branch at Mumbai. All goods required for salt at Mumbai are supplied
from Pune at cost plus 25% and all cash received at the branch is banked daily in the Head
Office Account opened in Bank at Mumbai.

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Sub: Advanced Accounting – Sem VI
Particulars Rs.
Stock on 1-4-2006 8,000
Debtors on 1-4-2006 11,300
Petty Cash on 1-4-2006 90
Returns inwards 400
Goods invoiced to Branch 25,000
Returns goods to Head Office 1,000
Bad Debts 100
Cash sales 1,400
Branch Expenses paid by Head Office
:
Rent 1,400
Salary 1,500
Sundries 700 3,600
Allowances given 450
Petty cash expenses at Branch 240
Total sales 34,900
Remittance ot branch for petty cash 280
Stock on 31-3-2007 8,400
Debtors on 31-3-2007 19,510
From the above particulars given the Br.A/c, Br Debtors A/c and Br.Petty Cash A/c.
[Oct. -2008]
[ 12 ] Sudarshan Ltd. Patna invoiced goods to its branch at Ulhasnagar at 20% on inflated
price. Prepare Ulhasnagar Branch A/c and Branch Debtors A/c in the books of the Head
Office from the following information for the year ended 2007-08.

Rs.
Debtors on 1.04.2007 52,400
Debtors on 31.3.2008 66,200
Stock on 1.4.2007 30,000
Stock on 31.3.2008 27,800
Goods received from Head Office 1,01,600
Cash sales 67,000
Allowances to customers 640
Yearly Turnover 1,87,000
Goods returned to Head Office 1,400
Goods returned by customers 1,160
Discount allowed 4,800
Bad debts 1,200
Rent and Taxes 3,600
Wages and Salaries 3,080
Carriage and Cartage 2,600

The Branch Manager is entitled to a commission of 10% on Branch profits after

charging such commission. [ March, 2008]

[ 13 ] M/s Moonlight Ltd., Indore has a branch at Bhopal to which goods are invoiced at
cost plus 33 1/3%. The branch remits all cash received to Head Office daily. All branch
expenses are paid for the Head Office.

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Sub: Advanced Accounting – Sem VI
Rs.
Branch Stock (1.1.2006) at Invoice Price 4,80,000
Branch Debtors (1.1.2006) 1,20,000
Petty Cash (1.1.2006) 16,000
Cash Sales 2,64,000
Discount to Debtors 36,000
Bad Debts written off 24,000
Return from Debtors 12,000
Collection form Debtors 9,60,000
Goods from Head Office (Invoice price) 16,80,000
Goods return to Head Office (Invoice price) 1,44,000
Credit Sales 12,00,000
Closing Stock (31.12.2006) Invoice Price 5,28,000
Cheques received from H.O. for expenses :
Petty Cash 24,000
Salaries 96,000
Rent and Rates 32,000
Advertisement 40,000
Actual Petty Expenses incurred by the 28,000
Branch

Prepare Branch Account, Branch Debtors Account and Branch Petty Cash Account as
it would appear in the books of Head Office. [March,07]

[ 14 ] Ashok Traders of Nasik has a branch at Pune to which goods are supplied by Head
Office, at 25% on cost price. Branch remits all cash received to the Head Office, and all the
expenses except petty cash expenses of the branch are paid by the Head Office by cheques.
Prepare Pune Branch Account in the books of Ashok Traders at Nasik taking into
consideration the following information for the year ended 31 March, 2003.
st

Stock at branch on 1-4-2002 2,00,000

Branch Debtors on 1-4-2002 20,000
Petty cash at branch on 1-4-2002 200
Goods sent tobranch 4,00,000
Cash sales 1,00,000
Credit Sales 5,00,000
Cash received from debtors 4,00,000
Goods returned by debtors 4,000
Discount allowed to customers 12,000
Bad debts written-off 8,000
Goods returned by Branch to Head Office 2,000
Cheques sent to Branch for expenses :
Salaries 16,000
Rent 4,800
Sundry expenses 2,400 23,200
Bills receivable from debtors 8,000
Petty expenses incurred by the Branch 1,900
Cash sent to Branch for petty expenses 2,000
Also Prepare Branch Debtor’s A/c Branch Stock A/c and Petty Cash A/c

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Sub: Advanced Accounting – Sem VI
[ 15 ] Satam Ltd. Nagar invoiced goods to its branch at Nasik at 20% on (inflated price) sales
price. Prepare Nasik Branch A/c in the books of the Head office from the following
information for the year ended 31 March, 2003.
st

Particulars Rs.
Debtors on 1-4-2002 26,200
Debtors on 31-3-2003 33,100
Stock on 1-4-2002 15,000
Stock on 31-3-2003 13,900
Goods received from Head Office 50,800
Cash sales 33,500
Allowances to customers 320
Yearly turnover 93,500
Goods returned to Head Office 700
Goods returned by customers 580
Discount allowed 2,400
Bad debts 600
Rent and Taxes 1,800
Wages and Salaries 1,540
Carriage and Cartage 1,300
The Branch Manager is entitled to a commission of 10% on Branch profits after charging
such commission. [ Oct 2003 ]

[ 16 ] Form the following particulars relating to Nashik Branch for the year ended 31 Dec.
st

2002. Prepare Branch A/c in the books of Head Office & find out the branch profit or loss

Amount
Stock at branch on 1-1-2002 10,000
Branch debtors on 1-1-2002 4,000
Petty cash at branch on 1-1-2002 500
Furniture at branch on 1-1-2002 2,000
Prepaid fire insurance on 1-1-2002 150
Salaries outstanding at branch on 1-1-2002 100
Goods sent to branch during the year 80,000
Cash sales at the branch during the year 70,000
Credit sales at the branch during the year 40,000
Cash received from debtors 35,000
Cash paid by branch debtors direct to the H. O. 2,000
Discount allowed to debtors 100
Cash sent to branch for expenses :
Rent 2,000
Salaries 2,400
Petty Cash 1,000
Insurance upto March 2003 6,000
600
Goods returned by the branch 1,000
Goods returned by the debtors 5,000
Stock at the branch on 31-12-2002 5,000
Petty expenses by the Branch 850

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Sub: Advanced Accounting – Sem VI
Provide depreciation on furniture at 10%p.a. Goods costing Rs. 1,200 were destroyed an
account of fire and a sum of Rs.1,000 was received by the branch from the insurance Co.
[March 2003]
[ 17 ] Sumitra Ltd. Company invoiced goods to their branches at 10% profit on invoice price
and branches sell goods on credit as well as for cash. Branches remit all cash received to the
Head Office and all expenses except petty cash expenses of the branch are paid by the Head
Office. The Nagpur Branch has sent the following figures for the year ending 31/3/01.

Amount
Stock at Branch on 1-4-2000 ( Invoice Price ) 15,000
Branch Debtors on 1-4-2000 26,200
Goods sent to Branch ( Invoice Price ) 50,800
Goods returned to Head Office ( Invoice Price ) 700
Sales at Branch : - Cash Sales 33,500
- Credit Sales 60,000
Allowances to Customers 580
Returns from Customers 320
Discount Allowed to Customers 2,400
Bad Debts 600
Cash received from Debtors 49,200
Cash sent to Branch for expenses :
Rent and Taxes (including prepaid for 2001 Rs.100) 1,800
Wages and Salaries 6,000
General Expenses 1,300
Stock at Branch on 31-3-2001 ( Invoice Price ) 13,900
Branch Debtors on 31-3-2001 33,100
( Oct 2002, Oct.97 )

[ 18 ] Rexona ltd. Raipur has a branch at Agra. Goods are invoiced to branch at cost plus
50% branch remits all cash received to the head Office and all expenses are met by Head
Office. Following particulars are available.
Rs.
Stock on 1-4-1999 18,600
Debtors on 1-4-1999 13,600
Petty cash on 31-3-2000 160
Goods invoiced to Branch (invoice price) 1,06,200
Sales at Branch : 1) Cash Sales 50,020
2) Credit Sales 62,000
Goods returned by debtors 2,400
Cash collected from debtors 60,800
Goods transferred from Delhi to Agra branch (invoice price) 3,000
Goods returned by branch to Head Office(invoice price) 3,000
Discount allowed to customers 300
Irrecoverable debts 100
Expenses at Branch - Rent 6,000
- Salary 4,000
- Office expenses 800
- Petty Cash 400
Actual petty expenses by branch manager Rs. 500.

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Sub: Advanced Accounting – Sem VI
You are required to prepare Agra Branch A/c in the books of Rexona Ltd. Raipur. Also
prepare 1] Branch Debtors A/c 2) branch petty Cash A/c 3) Branch Stock A/c 4) Branch A/c
for the year ended 31-3-2000 [ April 2001 ]

[ 19 ] A Ltd. Jaipur has a Branch at Jodhpur. Goods were invoiced to Branch at Profit of 16
2/3 % on invoice Price. From the following show Journal Entries & Branch Account.
1-10-88 31-12-88(Rs.)
(Rs.)
Cash 800 ?
Stock ( at Invoice Value ) 6,000 2,400
Assets 10,000 ?
Debtors 15,400 ?

Transactions during the period

Rs.
Goods supplied to Branch (at cost) 50,000
Sales : Cash 43,700
Credit 20,500
Goods returned to H. O. 1,800
Goods received from Debtors 3,600
Discount allowed 1,400
Bad debts 250
Amt. Received from Debtors 25,000
Amt. Remitted by H. O for :-
Salaries 1,200
Transport 400
Freight 900
Sundry Expenses 300
Goods destroyed by fire 1,200
Assets Purchased 5,000
Amount remitted to H. O. 61,500
Assets to be depreciated @ 10% on closing Balance.

[ 20 ] Vikas agencies opened a branch in Poona on 1/4/1997 Goods were invoiced at selling
price which was at cost plus 25%. Following are the particulars relating to year ended on
31/3/1998
Rs.
Goods sent to Branch 1,50,000
Sales :- Cash 50,000
Credit 70,000
Goods returned by customers 1,500
Cash received from customers 40,000
Discount Allowed 500
Cash remitted to bank for : -
Rent and Rates 750
Salaries 3,000
Sundry Expenses 500
Defective goods written off 500
Goods return by Branch 6,000

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Sub: Advanced Accounting – Sem VI
Stock on 31-3-1998 25,000
All cash received by Branch is remitted to Head Office You required to show Branch
Stock Account. Branch Stock Adj. A/c Goods sent to Branch A/c Branch Debtors A/c Branch
Expenses A/c and Branch P&Loss A/c in the ledger of Head Office for the year to 31-3-
1998.
( Oct. 98 )
[ 21 ] N. Joshi Traders, Nashik has a Branch at Aurangabad, to which goods are invoiced at
cost plus 33 1/3 % The Branch remits all cash received to head office daily. All branch
expenses are paid from the Head Office.

Rs.
Branch Stock (1-1-97) at invoice Price 2,40,000
Branch Debtors ( 1-1-97) 60,000
Petty Cash (1-1-97) 8,000
Cash sale 1,32,000
Discount to Debtors 18,000
Bad debts written off 12,000
Return form Debtors 6,000
Collection from Debtors 4,80,000
Goods from Head Office ( Invoice Price) 8,40,000
Goods Return to Head Office ( Invoice Price) 72,000
Credit sales 6,00,000
Closing Stock (31-12-97) Invoice Price. 2,64,000
Petty cash 12,000
Salaries 48,000
Rent & Rates 16,000
Advertisement 20,000
Actual Petty Expenses incurred by the Branch 14,000
Prepare Branch Account, Branch Debtors Account and Brach Petty Cash Account as
it would appear in the books of H. O. ( April 1998 )

[ 22 ] India Traders Nasik has branch at Pune, to which goods are supplied by Head Office at
25% on cost price. Branch remits all cash received to the Head Office and all Expenses
except petty cash expenses of the branch, are paid by the Head Office by Cheques.
Prepare Pune Branch Account in the books of India traders at Nasik, taking into consideration
the following information for the year ended 31 March 1997.
st

Rs.
Stock 1-4-96 1,00,000
Branch Debtors 1-4-96 10,000
Petty cash at branch 100
Goods sent to Branch 2,00,000
Cash sales 50,000
Credit sales 2,50,000
Cash received from Debtors 1,90,000
Goods returned by Debtors 2,000
Discount allowed to customers 6,000
Bad debts written off 4,000
Cheque sent to Branch for Expenses : - Salaries 8,000
Rent 2,400
Advertisement 1,200

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Sub: Advanced Accounting – Sem VI
Bills receivable from Debtors 4,000
Petty Expenses incurred by the Branch 950
Cash sent to Branch for petty expenses 1,000
Stock at Branch on 57,600
Also prepare memorandum Debtors Accounts and Petty Cash Accounts. ( May 97 )

[ 23 ] Star Ltd. of Bombay has a Branch at Poona. The Head Office invoice goods to Br. at
cost plus 1/3 . the branch transfers all cash received to Head Office daily. All branch
rd

expenses are paid from the Head office. From the following information prepare Poona Br.
A/c in the Books of Head Office & also prepare Goods sent to Br.A/c and Stock Reserve A/c
Rs.
Branch Stock (1-1-95) 80,000
Branch Debtors (1-1-95) 20,000
Petty Cash (1-1-95) 2,000
Cash sales 30,000
Discount allowed to Branch Debtors 4,000
Bad Debts Written Off 3,000
Return from Customer 1,500
Collection from Debtors 1,20,000
Goods sent to Branch (invoice price ) 2,00,000
Goods return to Head office 16,000
Credit sales 1,50,000
Closing Stock ( at invoice Price) 1,00,000
Cheques received from H. O. for expenses
Salaries 12,000
Rent & Rates 6,000
Advertisement 5,000
Petty cash 3,000
Actual petty Expenses incurred by Branch 4,000
( April 1996 )
[ 24 ] Vishal Emporium ltd. invoice goods to its Branch at cost plus 25% prepare Branch
Debtors account in Head Office books from following information.
Rs.
Debtors 1-1-93 26,200
Goods received from H. O. 50,800
Cash sales 33,500
Debtors 31-12-93 33,100
Allowance to customers 320
Total sales 93,500
Goods return by customers 580
Goods returned to H. O. 700
Stock 31-12- 93 13,900
Discount allowed 2,400
Bad debts 600
Rent Rates etc. 1,800
Wages & Salaries 6,000
Stock 1-1-93 15,000
Trade expenses 1,300
( April 1994 )

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Sub: Advanced Accounting – Sem VI
[ 25 ] Sarda Brothers Bombay has a branch at Nagpur. All goods required for sale at Nagpur
branch are supplied from Bombay at cost plus 25% and all cash received at the Branch is
banked daily in the Head Office Account opened in a bank at Nagpur. From the following
particulars give the branch account and Branch Debtors Account.

Rs.
Stock ( 1-1-92 ) 79,000
Debtors ( 1-1-92 ) 1,13,000
Petty Cash ( 1-1-92 ) 900
Returns from customers 4,000
Goods invoiced to Branch 2,50,000
Return goods to Head Office 10,000
Bad debts 1,000
Cash sales 14,000
Branch Expenses paid by H. O :-
Rent 14,000
Salary 15,000
Sundry Expenses 7,000
Allowance given 4,500
Petty Cash Expenses at Branch 2,400
Total Sales 3,49,000
Remittance to Branch for petty cash 2,800
Stock (31-12-92) 84,000
Debtors (31-12-92) 1,95,000
( April 93 )
[ 26 ] M/s Navyag Traders have their branch in Bombay to which goods are supplied at
selling price being 30% above cost. The branch remit all cash collections to the head office
immediately. The branch expenses are paid by the head office. From the following details
find out the amount of credit sales & prepare the Branch A/c in the books of Head Office.

Rs.
Stock on 1-1-92 52,000
Stock on 31-12-92 65,000
Debtors on 1-1-92 35,000
Debtors on 31-12-92 48,000
Cash sent to Head Office for Cash Sales 2,21,000
Cash sent to Head office for collection from Debtors 1,43,000
Goods invoiced to Branch 3,90,000
Rent Rates 12,000
Salaries 24,000
Sundry Expenses ( Including Petty Cash) 6,00
Petty cash on 1-1-92 50
Petty cash 31-12-92 100
Goods returned to head Office 2,600
Miscellaneous Income 100

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