Question

Question No. 7
M Ltd have a branch of N private
Ltd at kamptee. The head office paid
the following expenses by cheque for
branch: Salary Rs. 6,000 Rent Rs. 1,500
Petty expenses Rs. 500 Total expenses
of branch paid by head office is
Answer​

Answer 1

Answer:

Pannalal Patodia started Business on Jan. 1, 2008. His Head Office is in Meerut and Branch Office in Delhi. Goods are sent to the Branch at a Price 10% below Selling Price. Goods are sold to Customers at 50% Profit to Cost. All Branch Expenses are paid from the Head Office. As per agreement Branch Manager is paid commission at 10% on Branch Gross Profit. From the following particulars prepare Trading and Profit and Loss account in Head Office Books :

Head Office Branch

Rs. Rs

Purchases during the year 2,80,000 _

Sales 2,28,000 75,000