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Branch Accounts

The document contains 7 questions regarding branch accounting in the books of the head office. Each question provides various financial information about a branch, including opening and closing balances, goods sent and received, cash transactions, expenses, sales, returns and allowances. The questions ask to prepare various branch accounts to determine the branch's profit or loss based on the data, including branch accounts, goods sent to branch accounts, and debtor accounts.

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1K views

Branch Accounts

The document contains 7 questions regarding branch accounting in the books of the head office. Each question provides various financial information about a branch, including opening and closing balances, goods sent and received, cash transactions, expenses, sales, returns and allowances. The questions ask to prepare various branch accounts to determine the branch's profit or loss based on the data, including branch accounts, goods sent to branch accounts, and debtor accounts.

Uploaded by

navin_raghu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Branch Accounts

Q.1 P and Co. of Chennai sends goods to its branch at Hyderabad at


cost. The branch sells goods for cash and credit. All the proceeds
realized by the branch are sent to head office and expenses met by
the head office, except petty in this regard. The branch keeps a
Sales Journal and Debtors ledger only. The following is the list of
transactions between the head office and the Branch for the month
ending 31 March:
Opening balances:
Stock
Debtors
Petty Cash
Goods sent to branch during the year
Goods retuned by the branch
Cash Sales
Cash received on ledger accounts
Goods returned by the debtors
Discount allowed
Bad debts
Branch expenses met by the H.O.
Salaries and wages
Rent and rates
Telephone
Others
Cash sent to branch for petty cash
Closing balances at branch:
Stock
Debtors
Petty Cash

Rs.
5,000
3,500
150

Rs.
8,650
40,000
2,500
15,000
33,000
3,000
1,000
1,500

5,000
3,000
1,000
1,500

10,500

9,000
6,000
100

15,100

prepare Hyderabad Branch Account and Goods sent to Branch Account In the
books of H.O.
Q.2. ABC Ltd. Invoiced goods at cost to its branches situated in West
Bengal. The branches sell goods on credit as well as for cash. From
the following details relating to Kolkata branch, prepare a branch
account to ascertain profit or loss at the branch:

Goods received from ABC Ltd.


Goods returned to ABC Ltd.
Cash sales
Credit sales
Allowances to customers
General trade charges
Returns from customers
Bad debts
Discounts allowed to customers
Cash received from debtors
Rent and rates
Wages and salaries
Stock:
Opening
Closing

Rs.
25,400
350
16,500
30,000
150
650
300
300
1,200
24,600
900
3,000
13,100
6,950

Q.3. A head office in Mumbai has a branch I Delhi to which goods


are invoiced by the head office at cost plus 25%. Prepare Branch
Account in the books of head office from the following particulars:
Opening Stock Rs. 12,500; Opening Debtors Rs. 12,000; Goods Received
from Mumbai Rs. 40,000; Cash Sales Rs. 16,000; Cash Received from
Debtors Rs. 29,500; Goods returned to H.O. Rs. 2,000; Cash Received from
Expenses Rs. 14,500; Stock at the end Rs. 15,000; Debtors at the end Rs.
22,500.
Q. 4. X Company has a branch at Delhi. Goods are invoiced form
Head Office at cost plus 331/3. Find out profit at the branch according
to Debtors System.
Opening Balances:
Debtors
Petty Cash
Furniture
Stock (I.P)
Cash sent by Head Office for Petty Expenses
Branch Expenses and Losses:
Freight and Advertisement
Bad debts
Depreciation on Furniture
Petty Expenses

Rs.
10,000
1,000
2,000
8,000
2,000
5,600
50
80
1,500

Sales:
Cash
Credit
Goods returned by Debtors
Goods returned by Branch to Head Office
Cash received from Debtors
Stock at the end at I.P
Goods invoiced by Head Office during the year

50,000
3,600
800
2,000
20,000
7,800
88,000

Q.5. Modern shoe Stores has an old established Branch at


Chandigarh. Goods are invoiced to the branch at 20% profit on
sales, the Branch having been instructed to sent all cash daily to the
head office. All expenses are paid by the head office except petty
are required to draw up branch account as it would appear in the
books of the head Office, i.e., Modern shoe Stores:
Rs.
stock on Jan 1, 2002 (Invoice Price)
15,000
sundry Debtors on Jan 1, 2002
9,000
Cash in hand on Jan 1, 2002
400
Office furniture On Jan 1, 2002
1,200
Goods supplied by the Head Office (Invoice
80,000
Price)
Goods Returned to Head Office
1,000
Cash received from Debtors
80,000
Cash Sales
1,000
Credit Sales
480
Discount Allowed
30,000
Expenses Paid by the Head Office:
50,000
1,200
Rent
30,000
Salary
300
2,400
Stationery and Printing
Petty expenses paid by the Branch Manager
3,900
300
Provide depreciation on furniture @ 10% p.a.
280
Rent outstanding
500
Stock on 31.12.2002 (Invoice Price)
14,000
Q.6. Anderson bros., Chennai has a branch at Agra. All goods
required for sale at Agra and supplied from Chennai at cost plus
25% and all cash received at the branch is banked daily in the Head

Office Account opened in a bank at Agra.


From the following
particulars, give Branch Account, branch Debtors Account:
Rs.
Rs.
Stock (1.1.1999)
7,900 Cash Sales
1,400
Debtors (1.1.1999)
11,300 Reserve for bad and
Petty Cash (1.1.1999)
90 doubtful debts
1,500
Goods invoiced to
Return from Debtors
400
Branch
Returned goods to H.O.
Bad debts
Allowance given
Petty cash expenses
Stock 31.12.1999
Debtors 31.12.1999

25,000
1,000
100
450
240
8,400
19,510

Branch expenses
Paid By H.O.
Rent
Salary
Sundries
Total sales
Remittance to Branch for
Petty Cash

1,400
1,500
700
34,900
280

Q.7. Shri X has a retail branch at Allahabad. 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 Head Office. All
cash collected by the Branch (from customers and from cash sales)
is deposited to the credit of H.O. From the following particulars of
the Branch, prepare Branch Stock Account, Branch Debtors Account,
Branch Expenses Account and Branch Adjustment Account in the
books of the Head Office:
Rs.
Debtors on 1.1.1999
12,000
Debtors on 31.12.1999
14,000
Inventory with the Branch at Invoice Price:
On 1.1.1999
16,000
On 31.12.1999
17,000
Cash sales during the year
60,000
Total amount deposited in the H.O.
1,27,000
account during the year
Returned goods to H.O. at Invoice Price
5,000
Salaries paid
6,000
Rent paid
4,000
Discount allowed to customers
2,000
Bad Debts written
1,000
Spoilage
2,000

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