X Ltd. of Calcutta has a branch at Delhi. Goods are invoiced to the branches at cost plus 331/3%. The branch remits all cash received to the head office and all expenses are paid by the head office. From the following particulars prepare Branch Stock Account, Branch Adjustment Account, Branch Debtors Account and Branch Profit and Loss Account in the books of the head office (all figures in ~) :
|
Branch Debtors on 1.1.2014 |
6,000 |
Cash received from Debtors |
57,600 |
|
Branch Stock on 1.1.2014 (Invoice price) |
2,400 |
Discount allowed to Debtors |
1,400 |
|
Sales : Cash |
3,000 |
Bad debts |
300 |
|
Credit |
60,000 |
Branch expenses paid by H.O. |
15,000 |
|
Goods from head office (Invoice price) |
72,000 |
Branch stock on 31.12.2014 (Invoice price) |
11,400 |
