On 1.1.90 the goods invoiced by Bombay Head Office of a trader to its Madras
Branch were Rs. 96,000 at invoice price being 33'/,% on cost price. For 6 months
ended June 30, 1990, the Branch return showed that the sales were 58,000. The goods
invoiced at Rs. 4,000 were returned by the branch to the Head Office. The closing
stock at Madras Branch on June 30, 1990 were Rs. 33,600 at selling price. There was
no opening stock at the Branch.
You are required to prepare Branch Stock A/c, Branch Adjustment A/c, and Goods
Sent to Branches A/c in Bombay Head Office Books.
Answers
Answer: (i) Branch Stock A/c, Rs. 4,000 at a selling price of Rs. 96,000 is to be adjusted against the sales of goods by Madras Branch for 6 months at the cost price of Rs. 33,600 and the same has been transferred in Goods Sent to Branches A/c for Bombay Head Office Books as shown below:?
Branch Stock A/c Balance on June 30th Rs. 4,000 Rs. 96,000 Sales from Madras Branch during 6 months ended June 30th, 1990: 58, 000 - - 1 00, 000
Explanation:
On 1.1.90 the goods invoiced by the Bombay Head Office of a trader to its Madras
The branch was Rs. 96,000 at invoice price being 33'/,% on the cost price. For 6 months
ended June 30, 1990, the Branch return showed that the sales were 58,000. The goods
invoiced at Rs. 4,000 were returned by the branch to the Head Office. The closing
stock at Madras Branch on June 30, 1990, was Rs. 33,600 at the selling price. There was
no opening stock at the Branch.
You are required to prepare Branch Stock A/c, Branch Adjustment A/c, and Goods
Sent to Branches A/c in Bombay Head Office Books.
(i) Branch Stock A/c, Rs. 4,000 at a selling price of Rs. 96,000 is to be adjusted against the sales of goods by Madras Branch for 6 months at the cost price of Rs. 33,600 and the same has been transferred in Goods Sent to Branches A/c for Bombay Head Office Books as shown below:?
Branch Stock A/c Balance on June 30th Rs. 4,000 Rs. 96,000 Sales from Madras Branch during 6 months ended June 30th, 1990: 58, 000 - - 1 00, 000
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