Question

3. OM Ltd. Delhi invoices goods to its Mumbai and Kolkata branch offices at 20% less than the list price which is cost plus 50%
with instructions that cash sales are to be made at invoice price and credit sales at list price.
Opening Stock at Mumbai at its cost * 76,800.
Goods Sent to Mumbai (at cost to Delhi) * 1,10,000.
Cash Sales 74.8% of Net Credit Sales.
Goods returned by Credit Customers to Mumbai 45,000.
Goods returned by Mumbai to Delhi 36,000.
Loss of Goods by fire (at invoice price) *3,000 against which 80% of cost was recovered from the insurance Company.
Loss of Goods at Mumbai through normal pilferage (at list price) *3,000.
Debtors at Mumbai: Opening * 10,000, Closing * 11,000
sh remitted by Mumbai Branch to HO: 1,62,435.
scount Allowed to Debtors * 13,365.
Goods received by Mumbai till close of the year 1,27,000.
Provision is to be made for discount on Debtors at 15% on prompt payments at year end on the basis of year's trend of prompt
payments.
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Answer 1

Answer:

Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations.

Organizations in this sector: Institute of Chartered Accountants in England and Wales