Question

the mumbai head office sent goods to chennai branch at 25% profit over costs. from the following details, prepare a branch a/c in the head office books and ascertain the net profit at the branch. opening stock of goods at branch at invoice price 20,000, goods sent to branch at invoice price 90,000, loss of goods in transit at invoice price 6,000, pilferage at branch at cost to branch 1,200, closing stock at cost 16,000, sales 1,05,000, salaries and wages 6,000, other expenses 3,000. chennai branch received rs. 4,000 from the insurance company in settlement of the claim for the loss of goods in transit.​

Answer 1

Answer:

Branch ... Opening stock at branch at cost to branch(I.P of H.O) ... Goods returned by branch debtor direct to head office (selling price).