Question

4.PARMATMA 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 ₹ 1,53,600.
Goods Sent to Mumbai (at cost to Delhi) ₹ 2,20,000.
Cash Sales ₹ 1,49,600, Credit Sales ₹ 2,90,000.
Goods returned by Credit Customers to Mumbai ₹ 90,000.
Goods returned by Mumbai to Delhi ₹ 72,000.
Loss of Goods by fire (at invoice price) ₹ 6,000 against which 80% of cost was recovered from the insurance Company.
Loss of Goods at Mumbai through normal pilferage (at list price) ₹ 6,000.
Debtors at Mumbai:Opening ₹ 10,000
Cash remitted by MumbaI Branch to HO: ₹ 3,24,870.
Discount Allowed to Debtors ₹ 26,730.
Goods received by Mumbai till close of the year ₹ 2,54,000.
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.
Cash remitted by HO to Branch for Expenses: ₹ 18,000
Branch Expenses still outstanding:
₹ 1,482
Manager is entitled to a commission @ 6% of net profits after charging such commission.

Answer 1

I don't know

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Answer 2

Answer:

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