Question

5. M/S Sachin Electricals has a branch at Faridabad. All the goods are supplied from the headoffice at cost + 20% and all the expenses are paid by head office. Prepare the BranchAccount in the books of head office for the year ending 315 March 2020.Balance as on 1-4-2019:RS.Stock at Invoice Price30,000Debtors10,000Furniture6,000Petty cash1,000Insurance prepaid300Salary outstanding4,000Goods sent to Branch2,40,000Cash sales2,70,000Total sales3,50,000Goods returned from branch2,400Goods returned by Debtors1,000Cash sent to branch for expenses:Rent (Rs. 800 p.m.)9,600Salary (Rs. 4,000 p.m.)48,000Petty cash2,000Insurance (up to June, 2020)1,20060,800Petty cash expenses2,200Cash received from Debtors65,000Cash paid by Debtors direct to H.O.5,000Discount allowed to Debtors500Stock on 31-3-202018,000Goods costing Rs. 2,500 were damaged in transit and a sum of Rs. 2,000 was receivedfrom Insurance Company. Provide depreciation on furniture at 10% p.a.​

Answer 1

Explanation:

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