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.
Required: Prepare Mumbai Branch Debtors A/c, Mumbai Branch Stock Account, Mumbai Branch Adjustment A/c, Mumbai
Branch Expenses Account and Mumbai Branch Profit & Loss A/c under Stock & Debtors Method.
Answers
Mumbai Branch Debtor A/c, Mumbai Branch Stock A/c, Mumbai Branch Adjustment A/c, Mumbai Branch P&L A/c
Explanation:
Pls refer to the pics below
Answer:
Explanation:
Branch stock A/c
To Balance b/d 153600 To branch debtor 290000
To Goods sent 264000 To branch cash 149600
To Branch Debtor 90000 To goods sent 72000
To Branch adv 24800 To Branch ad. 1000
To branch p&l 4000
To branch adj. 800
To bal c/d 10000
532400 532400
Branch Debtor A/c
To balance b/d 10,000 By Branch stock 90000
To branch stock 290000 By Disc. allowed 26730
By branch cash 175270
By Bal c/d 8000
300000 300000