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Branch Accounting

The document outlines financial details for three branches of a company, including Patna, Agra, and Delhi, for specific fiscal years. It provides information on stock, debtors, sales, expenses, and goods sent to branches, requiring the preparation of branch accounts and branch debtors accounts in the head office books. Key financial transactions include sales, cash collections, expenses, and closing balances for each branch.

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Maheep Arora
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138 views1 page

Branch Accounting

The document outlines financial details for three branches of a company, including Patna, Agra, and Delhi, for specific fiscal years. It provides information on stock, debtors, sales, expenses, and goods sent to branches, requiring the preparation of branch accounts and branch debtors accounts in the head office books. Key financial transactions include sales, cash collections, expenses, and closing balances for each branch.

Uploaded by

Maheep Arora
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

1.

From the details given below relating to Patna branch for the year ending March 31,2006,
prepare branch account and branch debtors account in the books of head office. Goods are
invoiced to branch at 20% profit on invoice price

On 1.4.2005 balances were

Stock Rs 5000, Debtors Rs 2000, Furniture Rs1000, Petty cash Rs 200, Insurance prepaid Rs 50,
Salaries Outstanding Rs 1000.

During the year

H.O. sent Goods to Br. worth Rs 40000, Total sales Rs. 70000(cash sales Rs 55000), Cash collected
from debtors Rs16000, Goods returned by Br. Rs 500 and Goods Returned by Customers Rs 200.

H.O. sent Rs. 14800 cash to Br. For rent which is Rs 3600, Salaries Rs10200, petty cash Rs 600 and
Insurance up to June 2006 Rs 400. Actual petty exp incurred at Br. Rs 500 and Closing Stock at Br. Rs
3000 on 31.3.2006. Depreciate furniture by 20 %.

2. From the following details relating to Agra Branch for the year ending on 31.3.2007 prepare
branch account in the books of H.O.

Opening stock Rs 72000, Cash sales at Br. Rs 52500, Credit sales at Br. Rs 123000, collections from
Debtors Rs 113700,Goods sent to Br. During the year Rs 90000, Br. Expenses paid by H.O. Rs 9000,
exp paid by Br. Itself Rs 18000, unpaid exp Rs 4200.

Closing stock at Br. Rs 54000, closing debtors balance Rs 27480. Goods sent from H.O. to Br.
Remaining in transit on closing day Rs 10800.

3 Hemakshi Ltd. Kolkatta has a Branch in Delhi . goods are invoiced to the branch at I.P. which is
25% on cost. From the following data prepare a Branch account for the year ending 31 st
December 2009

Balances on 1st Jan 2009

Stock (at cost to H.O.)Rs 10000, Debtors at Br. Rs 8500, Cash at Br. Rs 2000, furniture Rs 25000

During the year

Goods sent to Br. Rs 162500 Credit sales at Br. Rs 87500 Cash sales Rs 51250

Goods returned to H.O. at I.P. Rs 6250 Cash received from Drs Rs 78650

Cash sent to Br. For expenses Rs 18000 Actual expenses at Br. Rs 17950 Cash discount to Br. Drs
Rs 390,

Sale of furniture on 1.7.2009 (Book value of which is Rs 9000 on the date of sale) Rs 6000

Balances on 31st Dec 2009 Stock at I.P. Rs 29925, Br. Cash Rs 4500, Br.Drs ?, Depreciate Furniture
@20%. Bills issued for rs 5000,discounted at Rs 4900

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