Chapter -?

Accounting f r Branch
BASIC CONCE
Types ofbranch
1. Dependent branc
) Independent branches

A. at the head office

B.
C.

System of acco nting

I. Debtors Svstem: nder this system head office makes a branch acco t. Anything given to branch
is debited and anytl ing received from branch would be credited.
il. Branch trading a. d profit and loss account method/Final accoun method: Under this system
head office prepare (a) profit and loss account (b) branch account ta ng each branch as a separate
entity.
il. Stock and debtors system: Under this system head office opens:
Branc asset account
Bran profi[ and loss account

Integral Foreign Qperation (IFO): It is a forOign operation, the acti ities of which are an inteeral
part of those of the reporting enterprise.
b. Non-Integral Foreign Operation (NFO): It is a foreign operation that is not an Integral Foreign
Operation. The buiiness of a NFO is carried on in a su ntially independent way by
accumulating cash and other monetary items, incurring expenses, gene ting income and arranging

Non-Intesral Foreidn Ooeration -translation

 Cha Accounti For Branch n Adhikari

O. No. I
Head office passes adj entry at the end of each month to adjust the positi$n arising out of inter-branch
transactions during the th. From the following inter - branch transactions in fianuary,2002, make the entry
in the book of head offi

a) Bombay Branch
1) Received Good: from Calcutta Branch, Rs. 4,000 from Patna Blanch.
;. 6,000
2) Sent goods to: 10,000 to Patna, Rs.8,000 to Calcutta.
3) Received B/R:Rs. 6,000 from Patna
4) Sent Acceptance: .4,000 to Calcutta, Rs. 2,000 to Patna.
b) Madras Branch (Apart the above)
5) Received Goods; .10,000 from Calcutta, Rs.4,000 from Bombay.
6) Cash sent: Rs. 2, to Calcutta, Rs. 6,000 to Bombay.
c) Calcutta Branch(apart the above)
7) Sent Goods to P : 6,000
8) Issued B/P: 4,000 Patna,4,000 Cash to Patna
Ans- Bombay 6,000, Patna 16,000, Madras 6,000, Calcutta 16,000

Q. No.2
Anil and Sunilril are partr iof a business having head office in Delhi and branch at Calcutta. Anil. looks after the
Delhi office arand Sunil I is after the Calcutta branch. Anil is entitled to 40o/o of fthe Profits made at Delhi while
ledto 30o/o
Sunil is entitle the Profits at Calcutta. The balance Profits /Losses are shared:equally.

The followings.trialbala ) as on 3lst December 2001. are furnished to you:

Delhi Calcr tta

Dr.Rs. Cr.Rs. Dr.RS. Cr.Rs.

30,000 40;000
opening Stc ck at cost
1,80,000 10,000 2,75i000_ 15,00;
purchases a nd returns
Goods Sent to:
50,000
Calcutta
- 70,000
Delhi
Goods recei ved from:
Calcutta 65,000
4S|00;
Delhi
15,000 3,15,00; 20i000 3,70,000
Sales and re turns
28,000 39r000
Expenses
64,000 4000 71i000 3,000
Customers, \ccounts
2,000 32,000 11000 51,000
Suppliers A ccount
70,000 6,000
Bank Accor mt
Fixed Asset S_
Opening wr tten down value
tr,oo: 801000
5,000
Calcutta brz Lnch account
17i000
Delhi Head office A/C
Capital and drawing A/c:
30,000 83,000 41000 35,000
Anil
5000 40,000 2si000 70,000
Sunil
5.39.000 5.39.000 6.20.000 6.20.000
You are informed that:
lt4l
 Accoun For Branch CA. Ra n Adhikari

1) On 30th Decenflber, 2001 Delhi head office remitted Rs.5,000 by bank draft to Calcutta Branch. The
envelope was feceived by the branch on 2nd January,2002.
2) stock at cost oir 3l't December, 2001 was worth:
Delhi and
a. Rs.46,0Q0 at
b. Rs.54,000 at Calcutta
3) Deprecation is to be provided at I0o/o
4) 10% of the cogt expenses relating to the head o lfice are to be t as overheads incurred on behalf
ofthe branch.
You are asked by the parthers to prepare:
1. Trading and p{ofit and loss Account for the year ended 3l't ,2001for Delhi office and
Calcutta branch in columnar from.
2. consolidated Balance Sheet of the firm as on 3l't December. I and
3. Branch and Hqad office Accounts in,respective book. Ans- H 1,00,800, Branch 7 6.,200
O. No.3
The fol is the trail ce of Malabar hills Branch as at 30th June.
H.O Account 32,4
Stock on July 1,2001
Purchases r,78,
Goods received from H.O
Sales 3,80,000
Goods supplied to H.O 60,000
Salaries
Debtors
Creditors 18,500
Rent 9,600
Office Expenses 4,700
Cash in hand and at Bank
furniture
458 458500
Addition information
(a) Stock on hand wag valued at Rs.27,000
(b) The Branch account in the Head Office Books on il0ft June,2002 at Rs.4,600 (Debit Balance)
(c) On 28th June, 200?, the Head Office forwarded good to the value o Rs.25,000 to the branch where they
were received on 3'd Julv. 2002.
(d) A cash remittance of Rs.12,000 by branch on24h June was recei by H.O on July l.
Required
(1) Journal entries neQessary to incorporate the above trial balance.
(2) The result of tradi4rg at branch
(3) Malabar hills branph account on the H.O. Books
Ans- 1,09,00

O. No.4
Sir Sundaram commence{ business on l't April; 2002with head office at ras and branch at Nagpur.
Purchases were made exclusively by the head office where the goods were before sale. There was no
loss or wastages in processing. Only the processed goods received from h office were handled by the branch
and these were thereto at processed cost plus 10%.

tlsl
 Chapter-2 Accounting For Branch CA. Rajan Adhi kari
All sales, whether by hea]d office or by the branch, were at a uniform gross frt of 25Yo on cost to Head
Office.
Following is the Trail Ba[ance of Sri Sundaram as on 3lv]March.2003:
Head Office
D .(Rs.) Cr.(Rs.)
Capital 62,000
Drawings ll ,000
Purchases a
J,
)3,900
Cost of Processing t( ,100
Sales 2,56,000
Goods sent to Branch 1,84,{100
Administrative ExpenseN 2i ,800
Selling Expenses 1C ,000
Debtors 61 .920
Creditors 1,20,280
Branch Current Account ,960
Bank Balance 3C ,400
6. 3,080 6,23,080

Branch Office
D (Rs.) Cr.(Rs.)
Sales 1,64,000
Goods received from Hdad Office lr' 6,000
Administrative ExpenseE 3,1 00
Selling Expenses l,t 40
Debtors 22 720
Creditors 2,160
H.O. Cument Account 52,300
Bank Balance 15 500
2, 8,460 2.18.460
The followins further in n are also available:
(1) Good sent by hea{ office to the branch in March, 2003 at Rs.8,800 r ere not received by the branch unt
April,2003.
(2) A remittance of R6.16, 860 from the branch to heacl office was not rr ;eived until April, 2003
(3) Stock taking at thQ branch disclosed a shortage of g;ood of Rs.4, 000 at selling price).
(4) Cost of unprocessdd good athead office on 31't Marrch; 2003 was Rr 20,000.

Prepare Trading and Profilt & Loss Account in Columnar firom and Balance lheet of the business as a whole as
on 3l't March, 2003. Ans- Ho. 26,840, Branch 1X.,920

O. No.5
Ashwin, on I't January, 2002!,with a head c ffice and one branch. Pu rchases
a trader commenped business
were made exclusively by the head office where the good were processed br fore sale. There was on loss or
wastage.
Only processed good received from head office were handlled by the branch and these were charged to the
branch at processed cost llus 10 per cent.
All sales, whether by hea{ office or the branch, were at uni.form gross profil of 25 per cent on their r espective
cost.
The following Trial balanpe as on 3l't December,z}l2was extracted from t he books.

[15]
 Accountin F*or Branch

Branch Office

19,93,350
Cost of Processin

Goods sent to Branchr

Selline & General

5,83,350
Branch/FI.O Current A/C

28,74,500 28,74,500 7,93,200

Further details are:
( 1) Goods charged by head office to branch in Decemtre
r, 2002 atRs. 1 I , were not received by the
branch until Januany,2003. A remittance of Rs.43.l/50 from the to head office in December
2002, is still in transit.
(2) stock -taking at Branch disclosed shortage of Rs.5,000 (at selling
(3) Stock of unprocessed goods at head office as on 3 1 't Decembe r. 200 was Rs.1,80,000.you are required
to prepare, Profit and Loss Account in columnar from and Balance of business as a whole.
Ans- Ho lr06,909,Branch 97,000

O. No.6

Ring Bell Ltd. Delhi has a Branch at Bombay where a sepa,rate set of book i used. The following is the trial
balance extracted on 3l.t December. 2002.

Head Office Trial Eialance

Share capital (Authorized: 10,000

Equity Shares of Rs.l00 each)
Issued: 8,000 Equity Shares 8,00,000
Profit &Loss AIC l-l-2002 25,310
Interim Dividend paid -Aug.,2002
General Reserve 1,00,000
Fixed Assets
Stock
Debtors & Creditors 21,900
Profit for2002 82,200
Cash Balance
Branch Currerrt Account 1,33,7I
Total
Branch Trial Ilalance

ttTl
 For Branch CA. Ra n Adhikari
Fixed Assets
Profit for 2002 31,700
Stock
Debtors and Creditors 10,400
Cash Balance
Head Office Current Account lr2gr0l0
Total l.7l.ll0
The difference between the balances of the Current Account in the two sets fbooks is accounted for as
followings:

1. cash remitted by Branch on 31't Decemb er,2002, trut received by th Head Office, on I't ianuary 2003 -
Rs. 3,000.
2. Stock stolen in trarNsit from Head Office and charged to Branch by Head Office, but not credited to
Head office in therBranch books as the Branch Manager Declined admit any liability (not covered by
insurance) -Rs.1,700.
Give the Branch curuent Account in Head office books. A,lso prepare the y's Balance Sheet as on 3l't
December,2002

O. No.7
KP Ltd. manufactures a range of goods which it sells to wholesale custome only from its head office. In
addition, the H.o. transfers goods to newly opened branch at factory cost pl lS%o.the branch then sells these
goods to the general publio on only cash basis.
The selling price to wholeEale customers is designed to givt: factory profit amounts to 30Yo of the sales
value. The selling price to the general public is designed to give a gross (i.e., selling price less cost of
goods from H.O.) of 30%of the sales value.
The company operates frorin rented premise and leases all other types of fi assets. The rent and hire charges
for these are included in the overhead costs shown in the trial balances.
From the information given below, you are required to prepare for the year 31't Dec., 2002Ln columnar
from.

(a) A profit & Loss acoount for

(i) H.O (ii) the branch (iii) the business.
(b) A Balance Sheet as on 3l't Dec., 2002 for the entire business.

Raw materials purchased 35,000

Direct wages 1,08,500
Factory overheads 39,000
Stock on l-l-2002
Rar[l materials 1,900
Finished soods 13,000 9,200
Debtors 37,000
Cash 22,000 1,000
Administrative salari es 13,900 4,000
Salesmen's Salaries 22,500 6,200
Other administrative & Sellins overheads 12,500 2,300
Inter-unit accounts 5,000
Capital 0,000
Sundry Creditors 3,000
Provision for Unrealized Profit in stock 1,200
Sales
 For Branch n Adhikari
Goods sent to Branch
Goods Received from H.O.

(1) On 28th Dec., 2002the branch remitted Rs, 1,500 to the H.O{ and this has not yet been recorded
in the H.O, books also on the same date, the H.O. dispatched goods to the branch invoiced
atRs.1,500 and these too have not yet been r:ntered into the bfanch books. It is the company's
policy to a_djust items in transit in the books of the recipient.
(2) The stock of raw materials held at the H.O. on 3l't Dec.,200I. was valued at Rs.2.300.
(3) You are advised that:
(a) There were no stock losses incurred at the H.O. or at the hranch.
(b) It is the company's practice value finished goods stock at fhe H.O. at factory cost.
(c) There was no opening or closing stock of work-in-progre$s.
(4) Branch employees are entitled to bonus of Fi.s. 156 under bilatpral agreement.
Ans- Ho. 11,Ds3,Branch 6,904

O. No.8
Alpha & Co., having head office in Mumbai has a branch in Nagpur. The brpnch at Nagrur is an independent
branch maintaining separate books of account. On 3 I .3 .2009, it was found t{rat the goods dispatched by head
office for Rs.2, 00,000 was received by the branch only to rlhe extent of Rs.1,50,000. The balance goods are in
transit. What is the accounting entry to be passed by the branch for recordin$ the goods in transit, in its books?

O. No.9
A Calcutta H.O. of each month to adjust the position afising out of inter branch
Passes one at the end
transactions during the month. From the following inter-branch transaction iip April 19 make the entries in the
books of Calcutta Head office: (Give details of the workinE;s)

(a) Delhi Branch

(i) Received goods from Nagpur Branch Rs.6,000
(ii) Sent goods to Ahmadabad branch Rs.15,00Crand Nagpur Brarlch Rs.12,000.
(iii) Received Bills receivable from Ahmadabad Branch Rs.9,000
(iv) Sent acceptances to Nagpur Rs.6,000 and Ahmadabad 3,000
(b) Kanpur Branch [In addition to (a) above]
i. Received goods from Nagpur Branch Rs.15,000 and Delhi Brancfr Rs.6,000
ii. Cash sent to Nagpur Branch Rs.3, 000 and Delhi Branch Rs.6,00Q.
(c) Nagpur Branch [In addition to (a) and (b):]
I. sent goods to Ahmadabad Branch Rs.9,000
II. Received Bills Receivable from Ahmadabad Branch Rs. 9.000
IIL Received Cash firom Ahmadabad Branch Rs.5.000.

O. No. 10
On 3l't March, 2000 Kanpiur Branch submits the following Trial Balance to Head Office at Lucknow:

Debit Balance Rs.In lacs

Furniture and equipment 18
Depreciation of Furniture 2
Salaries 25
Rent 10
Cha r-2 Accounting For Branch CA. Ra Adhikari
Advertising 6
a
Telephone, Postage 4nd Stationery J
Sundry office expenses I
Stock on l't April, 1999 60
Goods Received froln Head Office 288
Debtors 20
Cash at Bank and in hand 8
Carriage Inwards 7
Total 448
Credit Balance Rs.In lacs
Outstanding Expensps 3
Good Returned to Head Office 5
Sales 360
Head Office ,
80
Total 448
Addi tional Information:
Stoc k on 3l't March, 200Q was valued atRs.62 lace on 29th March,2000. T l head Office dispatched gor rds
costi ng Rs.10 lacs to its b{anch. Branch did not receive goods before l't 41 il, 2000.Hence the figure of goods
recei ved from head office does not include the goods. Also the head office as charged the branch Rs.1 l ac for
centl 'alized services for wfrich the branch has not passed th,e entry.
You are required to
1 Pass journal E{rtries in the books of the Branch to make necessu r adjustments.
2 Prepare final dccounts of the Branch including Balance Sheet, rd
3 Pass Journal Ehtries in the books of the Head ()ffice to incom ate the whole of the Branch Trial
balance. Ans-Profit Rs. 24

o.N o. 11
A&. Co. having its Head 4t Delhi with Branch at Lucknow and Allahabad ose its annual Accounts on llsr 1

Dece ;mber, 2002,when the following transactions have place :

(, r) Remittance of Rs.4,500 made by Lucknow Braneh on27th Decemb was received by the Head ( )ffice
on next.
5th Janu4ry
( r) Goods valuing Rs.p,200 dispatched by Allahabad Biranch on2TthD :ember under instructions fr, rm the
th
Head Office, was rteceived by the Lucknow Branch on 30fi January ext.
(, ;) Depreciation amoqnted toRs.1,100 on Lucknow Branch Fixed Asst r (accounts of such assets art

maintained by the Head Office.)

(r 1) Goods worth Rs.9,000 dispatched by the Head Office to Lucknow r 30h December, was receivt rd by
that Branch onTrh flanuary following.
Show the entries in the books of Head Office and the Lucknow Bra :h as at the close of the year

Q. N, t. 12
ABc rmbay merchant opens a new branch in Delhi, which trades independe ,ly of the Head Office.
The ransaction of the yeaf ended
1 3l't March. 2006 are as under:
Rs.
Gooc ls supplied by Head Office 2,00,000
Purcl rases from outsiders:
Credit 1,55,5(
Cash 30,000 I 85500
Sales

[20]
 For Branch CA. n Adhikari
Credit 2,50,
Cash 46,000 2,96,500
Cash received from Customers 3,04,500
Cash paid to Creditors 1,42,500
Expenses paid by Branch 89,500
Furniture purchased by Bfanch on credit 35,000
Cash received from Head Office initially 40,000
Remittances to Head Offibe i 1,10,000
Prepare the Branch final dccount and the Branch Account in the Head Offi Books, after taking the following
into consideration:
(l) The Account of thB Branch fixed assets are maintained in the Head books.
(2) Write off Depreci4tion on Furniture at 5per cent per annum for full
(3) A remittance of Rq.20,000 from the Branch to the t{ead Office is in
(4) The Branch valued its closing stock at Rs.1, 20,000.
Ans- Net Loss 60,250 Bs 1,98,750

O. No. 13
Alpha & Co. having head office in Mumbai has a branch irr Nagpur. The h at Nagpur is an independent
branch maintaining separeite books of account. On 31.3.2007, it was found the goods dispatched by head
office for Rs.2,00,000 wa$ received by the branch only to the extent of Rs.1 50,000.
The balance goods are in {ransit is the accounting entry to be passed by the for received the eoods in
transit, in its books?

O. No. 14
Show adjustment Journal pntry in the books of Head Office at the end of A iI,2003 for incorporation of inter-
branch transactions assuming that only Head Office maintains different accounts in its books.
A) Delhi Branch
l. Received goods from Mumbai -Rs.35,000 and Rs.15000 fi Kolkata.
2. Sent goods to Chennai -Rs.25,000, Kolkata-Rs.20,000.
3. Bill ReceiVable received -Rs.20,000 from-Chennai.
4. AcceptancQs sent to Mumbai -Rs.25,000. Kolkata -Rs.10,
B) Mumbai Braflch (apartfrom the above):
5. Received gpods from Kolkata -Rs.15,000, Delhi-Rs.20,000.
6. Cash sent to Delhi -Rs.15.000. Kolkata -Rs.'7.000.
C) Chennai Branch (apart from the above):
7. Received gbods from Kolkata -Rs.30,000.
8. Acceptancgs and Cash sent Kolkata -Rs.20,000 and Rs.l0, . Respectively.
D) Kolkata Branctl @part from the above):
9. Sent goods to Chennai -Rs.35,000.
10. Paid cash t0 Chennai -Rs.15,000.
1 1. Acceptancqs sent to Chennai -Rs.15,000.

All working should from parts of the answer.

O. No. 15

1271
Chapter-2 Accountinq For Branch CA. Rajan Adh ikari
The Head Office a business and its branch keep their own books and prt own profit and Loss'Account. The
following are the balance on the two sets of books as on 3llrt December, after having ascertainment of
profit and after making all adjustment except those referrerl to below:

Head Offrce Branch

Dr. Cr. Dr. Cr.
Capital 1,00,000
Fixed Assets ,u,ooo 16,000
Stock 34,200 10,740
Debtors and Creditor 7,820 3,960 4,840 1,920
Cash r0,740 1,420
Profit and Loss A/C 14,-660 - 3,060
Branch Account 29,860
Head Office AIC - 28.020
1,18.620 1.18.620 33.000 33,000
Set out the Balance Sheet of the business as on 3l't December,2002 and thr Journal Entries necessa ry (in both
set of books ) to record the adjustments dealing with the following:
(a) On 3 I't December, the branch had sent a cheque of Rs. I ,000 to he Head Office, not rec eived by
them nor credited to the branch till next month.,
(b) Goods valued at Rs.440 had been forwarded by the Head Offic to the branch and invoi ced on 30t 3Oth
December, but were not received by the branchL nor dealt with it their books till next mo nth.
(c) It was agreed that branch should be charged with Rs.300 for adr inistration service. renc Lered by
the Head Offioe durins the Year.
(d) Stock stolen from the Head Office to the branclh and charged to e branch by the Head Offrce but
not credited to the Head Office in the branch books as the manager declined to admit any
liability, Rs.400 (not covered by insurance).
(e) Depreciation of branch assets, of which accounts aremai by the Head Office, not provided
for Rs.250.
(f) The balance of profit shown by the branch is to be transferred to Head Office Books.
Ho 14,560, Branch 2,510

O. No. 16
Give journal entries in the books of head office to rectify orr adjust the foll

D Goods sent to branch RS.12,000 stolen during transit. B manager refused to accept any
liability.
r) Branch paid RS.15,000 as salary to the officer at head offi on his visit to the branch.
il) On 28th march, 20I2,the H.O. dispatched goods to the invoiced at Rs 25.000 which was
not receivpd by branch till 31't march,20l1l..
IV) A remittance of RS.10,000 sent by the
on l'tApril ,2012.
V) Head office made payment of Rs 25,00
its own purchase account,

O. No. 17
Give journal entries in the book of head office to rectify or adjust the following:

t
 Frlr Branch an Adhikari
D Goods sent to branch Rs 12000 stolen during transit, ch manager refused to accept any
liabili{y.
iD Branch paid Rs 15,000 as salary to the officer at head ice on his visit to the branch
iiD On 28fr march, 20I2,the HO dispatched goods to the invoiced at Rs 25,000 each was
not reoeived by branch till 31,1 march, tl0l2.
iv) A remittance of Rs.10000 sent by the branch on 30ft m 2012rcceived by the HO on lst
April/012
v) Head office made payment of rs25000 ,f,or the purchase f goods by branch and wrongly
debited its own purchase account.

Q. No. 18
Give Journal Entries in the books of Branch A to rectify or adj the following:
i. Head Offrce expenses Rs. 3,500 allocated to the Branch, but not recorded in the Branch
Books.
ii.Depreciation of branch assets, whose accounts are kept b the Head Office not provided
earlier for Rs. 1.500.
iii. Branch paid Rs. 2,000 as salary to a H.O. Inspector, but amount paid has been debited
by the Brflnch to Salaries account.
tv. H.O. collected Rs. 10,000 directlv frorn a customer behalf of the Branch. but no
intimatiorl to this effect has been receiveclby the Branch.
A remittance of Rs. 15,000 sent by the Branch has not been received by the Head
Office.
vi.Branch A incurred advertisement expenses of Rs.3,000 behalf of Branch B.

Q. No. 19

The Empire store Ltd. Invoice goods to their various branc:hes at cost and branches sell on credit as well as
for cash. For the following details relating to the Bombay branch, prepare necessary accounts in the Head
office books:
Rs.
Debtors I't Januayy, 1992
Debtors, 31't December, 1992 3
Cash Balance, l't January, 1992 a
J
Stock, l"t J anuary, 1992 I ,000
Stock, 3l't December, 1992 I ,900
Good received from Head Office 800
Cash received from head office 500
Goods returned to head office
Cash sales ,500
Credit sales ,000
Allowances to customers J 0
Returns from customers 5 0
Discount allowed to customer 2 t00
Bad debts
Remittance to head office ,900
Rent and rate
Wages and salaries
General trade charse

[23]
Cha Accou For Branch CA. Rai Adhikari
Normal loss of gpods due to wastage ,200
Abnormal loss of goods due to pilferage ,000 Ans- 29,300

O. No.20
Hindustan Industries Borllbay has a branch in Cochin offic:e goods are i at cost plus25%. The branch
sells both for cash and on credit, Branch Expense are paid direct from head ice and the Branch has to remit
all cash received into the Head office bank Account.
From the following details, relating to calendar year 2002, prepare the t in the head office ledeer and
ascertain the Branch profit. Branch does not maintain any books ofaccount but sends weekly returns to the
Head office.
Particulars

Goods received from Head Office at invoice price 6,00,000

Rectums to head Office pt invoice price 12,000
Stock at Cochin as on 1't January,2002 60,000
Sales in the year - Cash 2,00,000
Credit 3,60,000
Sundry Debtors at Cochitn as on lst January,2002 72,000
Cash received from Debtors 3,20,000
Discount allowed to Debtors 6,000
Bad Debts in the year l 4,000
Sales returns at Cochin Branch 8,000
Rent, Rates, taxes at Brahch 18,000
Salaries, wages, Bonus a,t Branch 60, 000
6, 000
Stock at Branch on 3l't 6er.2002 at invoice
Ans- 35,600
O. No.21
Harrison Itd., Madras has a branch at New Delhi to which lqood are sent @ above cost. The branch makes
both cash and credit salesl Branch expenses are met partly from H.O .and lv bv the branch. The statement of
ses incurred bv the branch e month is sent to head for recordin

Cost of goods sent to Br4nch at cost 2,00,000

Goods received by Brangh till3l-12-2002 at invoice price 2,20,000
Credit sales for the year I,65,000
Cash sales for the year 59,00b
Cash Remitted to head office ' 2,22,500
Expenses paid by H. O. 12,000
Bad Debts written off 750

Balance as on

Show necessary ledger acoount in the books of the head and determine the and Loss of the Branch for the
year ended 3l't December,2002. 16,250

Q. No.22
M invoice good to its Kanpur branch at2)o/o less than the list price which is plus 100% with instruction that
cash sales were to be madE at invoice price and credit sales at list price.

124l
 Lnaprer-z Accounting For Branch CA. n Adh ikari
From the following partifulars ulruituut" from Kanpur branch, prepare
a) Branch Stock Accoudt
b) Branch Debtors Accortrnt and
c) Kanpur Branch Accou[rt to reveal the profit for year.

Rs.
Stock in beginning at invpice price 19,000
Debtors in the beginning 10,000
Personal computer (P.C.) at branch 50,000
Good received from HO pt invoice price 1,90,000
Cash Sales 92,000
Credit sales 1,20,000
Goods in transit at the end 10,000
Cash sent to branch for e{penses 32,000
Actual Expenses at branch 30,000
Stock at the end at invoicp price 16,000
Bad debts written off 400
Goods returned by custorlters direct to HO at list price 1,500
Debtors at the end 8,1 00
Depreciate personal comf,uter by 20%
verify profit by preparin$ branch adjustment account and branch profit and loss account. Ans- 47,100

Q. No.23
New Textiles Limited op$rates a number of retail shops to which goods are voiced at wholesale price which
cost plus 20%. Shops sell the goods at the price which is wholesale price ph l0%. From the followins
particulars ascertain the pfofit or loss for 2002 at Shop No. 143:

Rs.
Stock at shop on January I, 2002 15,000
Good invoiced to shop di;rring 2002 1,40,000
Sale at the shop during ttfe year 1,54,770
Goods destroyed by acci{ent (retail value) 660
Expenses at the shop 7,200
Ans- Net profit 6,27A
O. No.24
The Bombay Trading confpany invoiced goods to its Delhi branch at cost. r ead Office paid all the branch
expense s from its bank account except petty cash expensesi which were met by the Branch.

All the cash collected by tfie branch was banked on the sanre day to the cred t of the Head Office. The follrowmg
is a summary of the transaptions entered in to the branch duLring the year end :d December 31. 2002.

Rs. Rs.

t2sl
Chanter-2 Accounting For Branch cA. n Adh ikari

Stock January 1 7,000 Bad Debts 600

Debtors, January I 12,600 Goods returned by custor ners s00
Petty Cash, January 1, 200 Salaries & wages 6,200
Goods sent from H.O 26,000 Rent & Rates 1,200
Goods returned to H.O 1,000 Sundry Expenses 800
Cash sales 17,500 Cash received from
Credit sales 28,400 Sundry Debtors 28,500
Allowances to customers Stock, Dec.31 6,500
Discount to customers 200 Debtorsi, Dec. 31 9,800
1,400 Pettv Cash. Dec. 3l 100
Prepare: (a) Branch Account (Debtors Method), (b) Memorandu r Branch Trading3 and profit I rrofit & Loss
L<
Account to prove the results as disclosed by the Branch Account and (c) Br rch Stock Account, bra nch profit &
mt, branch
Loss Account, Branch Debtors and Branch Expenses Account by adopting t e Stock and Debtors,tors method.
m ethod.
Ans- 9,400
9.4

O. No.25

rring the year ended 31st December,2002, X & Co.fo Madras sent to thei Branch at Bombay
Duri ly good costing
Rs.l ll3 per cent on
.1,00,000. They used to invoice to the Branch at price designed to show 'oss profit of 33-ll3
1

roice price:
invo
Collllections at the Branch from debtors amounting to Rs.26i,390 were all ser to Head Office .Brr
Branch
nsactions during the year were:
transa(
Cash
sh sales
s -Rs.1,21,050
Credit
odit sales -Rs.27,600
,ods returned by Customers -Rs.300
Goods
,ods returned to Head Office -Rs.780 (invoice price)
Goods
On 31-12-2001 Rs.) On 31-12-2002 (Rs.)
Stock (at invoice price) 2,250 2,700
Sundrv Debtors 1.320 2.230
rods at the Branch of Rs. 1,260 (invoice price) were
Goods were lost. Insurance comp y paid Rs.730 on the
re cclaim.
i
anch expenses, paid by Head Office, amount to Rs. 36,7i80.
Branch
ow the necessary Ledgqr Accountants as would
Show would app(
appear irn the head offrce coks recording the abo
above
nsactions relating to tho branch profit & Loss Account.
transactions Accou Ar .13,120

Q. No.26
ro Ltd. has two branches, in Cochin and Bangalore. During The year end 1 3l't March,20X2,
Hero 20X2, go
good have
:n invoice to the Cochin branch at2}%oabove
been at2jo/oabove cost to the Bangalore branc at25%o abovee cost. Th,
The branches
follo
do not maintain complete book of account but the followinlg ar on 3l't March,
figures are avat ble to the year
20x2.
N2.

Particulars (Rs.) Bangalore (Rs.)

Opening Stock at invoice price 10,000
Goods sent to branch at cost 40,000
Amount remitted by branch 80,000
Amount remitted by H.O 15,000
Goods retuned by branch
Opening Cash I,000
Closing Cash s00
Goods retumed by Custorners at branch at selling price 4,000
Expenses atbranch in Cash 3,000

125j
I
Cha For Branch CA. Adhikari
All sales at the branch are for cash. During the year, Cochin purchased assets worth Rs.4.000 and this is
included in the figure of branch expenses. Cochin branch transfened to the ngalore branch stock costing
Rs.5,000 during the year. The Bangalore branch remittecl Its.2,000 to the in branch also during the year.
There was a closing stock of Rs.24,000 valued at invoice price at the Cochi branch. There was not closins
stock at Bangalore branch.

Prepare Branch Stock Account, Branch Stock adjustme

Account and branch profit and Loss Account in the Hea

App. surplus -3

O. No.27
X Ltd., Bombay, started on 1 April 98, has two branche
branches are received from the Head Office invoiced at
paid by the H.O. each branch has its own sales ledger
remitted daily to Head Office by the branches.

The following particular relating to the year ended 31 Mar,ch 1999 have beeir extracted from the weekly
statements sent by the Branches:

Kanpur (R:s.) Lucknow (Rs.)

Credit sales 1,25,200 1,10,000
Cash sales 78.600 85,200
Sales Returns 2,300 1,200
Sundry Debtors 34,500 23,600
Rent and Rates 3.200 4.500
Debts
Bad 6,000
Salaries 16,000 18,000
General Expenses 2,600 1,500
Goods received fromH.O 1,50,000 1,25,000
Advertisement 7.500 5.200
Stock on 31 March lggg 45
You are required to prepare the Branch Account as the
the Profit or Loss for the period the Trading and profit

O. No.28
C Ltd. of Delhi has a branch. Goods are invoiced to the bri anch does not maintain
account books and all collection at the branch are remi ed of the branch are
reimbursed by the office. From the following particular;, p the books of head office
for the six months ending on 30th September, 20X1.

Amount Amount
(Rs.) (Rs.)
Opening stock 55,000 Bad debts 400
(At cost to head office) Trarde discount to cc ;tumers 12,000
Opening debtors 15,000 (Already taken in ac :ount while
invoicing)
Openins furniture 12.000 Goods sent to branc on27.9.Xl
Openins pettv cash 500 Rer;eived by branch rn 5.10.x1 1500
Transactions for six months Cash sent to branch br expenses 10.500
Goods received from head office 2.25.000 Cash discount allou :d to costumer 800
t27l
 Chanter-2 Accounting For Branch CA. Adhikari
Cash sales 1,95,000 BzLlances on30.9.2 x1
Credit sales 80,000 St,cck 5,600
Goods retumed to head office 12,750 Dr:btors ()

Normal loss 1.000 Petty cash s00

Sales retum by costumers to branch 500
Cash received from debtors 50,000 Depreciate furnitur at20%o for 6
months
Bills receivable received from 15,000
costumers at branch
ns- 40.080

O. No.29
widespread Ltd. invoices good to its branch at cost plus 2,0yo. The branch ls goods for cash as well as on
credit. The branch meets its expenses out of casj collected from its debtors d cash sales and remits the balance
of cash to head office after withholding Rs,10, 000 necessrlry for meeting i mediate requirements of cash. On
31"1 March, 2001 the assets at the branch were as follows:

Cash in Hand
Trade Debtors
Stock at Invoice Price
Furniture and Fittin
During the accounting year ended 3l.t March; 2002 the invoice price of dispatched by the head office to
the branch amounted to \s.l crore 32lakh. Out of the poods received bv e branch sent back to head office
goods invoiced at Rs.72,000. other transactions at the branch durine the were as follows:

Cash Sales 9,700

Credit sales 3,140
Cash Discoultt Allowed to Debtors 58
Returns by customers r02
Bad Debts witten off an
Expenses paid by Branch 842
Cash Collectod from Debtors 2,842
On I't January, 2002 the branch purchased new furniture for Rs. 1 laktr for payment was made by head
office through a cheque.
On 3l't March 2002branch expenses amounting to Rs.6,000 were outstandi and cash in hand was, again
Rs.10,000. Furniture is subject to depreciation @l6Yo per annum on dimini ing balances method. Prepare
Branch Account in the books of head office for the year ended 31st March.
Ans- 1,096
Q. No.30
Rahul Limited operates a number of retail to w,hich goods are invoiced at olesale price which.is cost plus
25o/o these outlets sell the good at the retail price which is wholesale price lus 20o/o.
Following is the information regarding one of the outlets for the year ended t-3-2002:

Stock at the outlet 1-4-2001

Goods invoiced to the outlet during the year
Gross profit made by the outlet
Goods lost by fire
Expenses of the outlet for the year
 Accoun F'or Branch cA. an Adhikari
Stock at the outlef 3l-3-2002

You are required to prepare the following u..outrt, in th.6"ks Rahul for the year ended 31-3-
2002: "f
(a) Outlet Stock Account.
(b) Outlet Profit & Loss Account.
(c) Stock Reserve Account.
Ans-Abnorrmal Loss Rs.l Sales 3,60,000 Net Profit 22.000

O. No.31
Ganga Ltd. having head office at Mumbai has at branch at Nagpur. The
office does'wholesale trade only at
cost plus 80%. The goods are sent to branch at the wholesale pfice viz., plus 80%. The branch at Nagllur is
wholly engaged in retail tpade and the goods are sold at corst to H.o. plus I
Following details are funxished for the year ended 3l't March, 2009:
Head Office Rs Branch Rs.
Opening stock (as on 1.4.2008) 2,25,000
Purchases 25,50,000
Goods sent to brancfr (Cost to H.O. plus 80%) 9,54,000
Sales 27,81,000 9,50,000
Office expenses 90,000 8,500
Selling expenses 72,000 6,300
Staff salary 65,000 12,000
You are required to prepa(e Trading and profit and Loss Account of head o ice and branch for
the year ended
31st March, 2009. Ans- Ho. Rs. 13,89,000, Branch Rs. 6g.200 Stock HO. Branch
,00,000 99,000

Q. No.32
concept & co., with its Head office at Mumbai has a branph at Nagpur. are invoiced to the Branch at
cost plus 33.33%. The following information in respect of branch for the ended 3l't March, 2.006:

Goods Sent to Bra4ch (Invoice price)

,000
Stock at Branch on 1.4.2005(invoice price) ,000
Cash sales I ,000
Return of goods by customers to the Branch 6
Branch expenses (paid in cash) 5
Branch debtors balance on 1.4.2005 000
Discount allowed I
Bad debts t, 00
Collection from Debtors 2 70,000
Branch Debtors choques returned dishonored 5 000
Stock at Branch on 31.03.2006 (in voice price)
,000
Branch debtors on 31.03.2006 00
Prepare, under the
$tock and Debtors system, the following Ledger in the books of the
Head Office:

[2e]
 Accountin For Branch CA. Ra Adhikari

(i) Nagpur Branch Stock Account

(ii) Nagpur Branch Debtors Account
(iiD Nagpur Branch Adjustment.
Also compute shortage of Stock at Branch, Ans- 156,000

O. No- 33
Red and Co. of Mumbai started a branch at Bangalore o
The branch makes both cash sales and credit sales. Bran
account remitted to H.O branch does not maintain doubl
relating to branch are maintained in H.O following furth

Cost of goods sent to branch.

Goods received by branch till 3 I .3.2007:
Credit sales for the Year
Closing debtors on 31.3.2007.
Bad debts written off during the Year 400
cash remitted to H'o. 86,000
Closing cash on hand at branch on 31.3.2007 . 4,000
Cash remitted by H.O.to branch during the year 6,000
Closing stock in hand at branch invoice price
Expenses incurred at br anch
Draw up the necessary Lodger Account like Branch De
Branch Account, Branch Cash Account, Branch Expens
ascertaining gross profit and Branch profit and Loss A/

O. No.34
'anch at 20ohprofit on sale., Branch
B
XYZ Company is having its branch at Kolkata. Goods aie invoiced to the
:tIy
id by head office except PettY
has been instructed to send all cash daily to head office. All expenses are
expenses which are met by branch manager. From the following particula
books of
prepare branch account in bor
head office.

Rs Rs

Stock on I't April(invoipe price) 30.000 Discount allov ld to debtors 160

Sundrv debtors on l't APril 2010 r 8.000 Expenses paid lv head office
1.800
Cash in hand as on Aprill l't 2010 800 Rent
Office furniture on I't April 2010 3.000 salary 3.200
Goods invoiced from thp head 1,60,000 Stationerv and rrinting 800
office(invoice price)
Goods returned to head office 2.000 Pettv expenses oaid bv branch 600
Goods returned by debtors 960 Depreciation t bo provided 'on
branch furnitu t at lj%opa
Cash received from debtors 60,000 Stock on 31't r arch20ll(at 28,000
invoice orice)
Cash sales 1.00.000
Credit sales 60,000
Ans- 24,180

[30
 For Branch cA. an Adhikari
O. No.35

Carlin & co. has head office at New York (U.S.A) and branch at Mumbai ( ndia). Mumbai branch furnishes you
with its trial balance as ofi 31.1 march, 2002 andthe addition information thereafter;

rr. Cr.
upees In

Stock on 1st April,2001

Purchases and sales
Sundry debtor$ and creditors
Bills of excha4ge
Wages and sal{ries
Rent, rates an{ taxes
Sundry chargeg
Computers
Bank balance
New York office A/C

Additional infornXation :
a) Computers were acquired from a remiffance of US$ 6,000 recei from New York head office and
paid to the Suppliers. Depreciate computer at 60%o for the year.
b) Unsold stock of Mumbai branch was worth Rs.4,20,000, on 3l't arch,2002.
c) The rules of elchange may be taken as follows:
i) on 1.4.2001@Rs,40 per US $
ii) on 31.3.2002@Rs.42 per US $
iii) Average exchange rate for the year @Rs.41 per US S
iv) Conversiofi in $ shall be made up to two decimal accuracy.

You are asked to prepare in US dollars the revenue statemr:nt for the year 3l't March, 2002 andthe
balance sheet as on that date of Mumbai branch as would zppear in the bc of New York head office of
Carlin & Co. You are informed that Mumbai branch account showed a balance of US $ 39609.18 on
3I.32002 in New York books and there were no items pending reconcili
(1999-May { I }) (l0marks) Ans- G. Loss 1,402.45, Net Loss 17

O. No.36
The Washington branch of XYZ Mumbai sent the following trial balance on 3l't December. 2007:

Head Office AIC 22,800

Sales 84,000
Debtors and Creditqrs +,soo 3,400
Machinery 24,000
Cash at bank 1,200
Stock, I January,2Q07 1I,200
Goods from HO 64,000
Expenses 5,000
lrl01200 1,10

t31l
 X'or Branch CA. Rai an Adhikari
In the books of head offipe, the Branch a,/c stood as follor;vs:

Washington lfranch A/C

Rs. Rs.
To Balance b/d 810,000 By Cash 29,76,000
To goods sent to branch 29.26.000 By Balance c/ 8.60.000
37,36,000 37,36,000
Goods are sent to the braflch at cost plus l0%o and the branch sell good at I
ice price plu.s 25%o
Machinery were acquired on 3l't January 2002
When $1.00 =Rs.40.
Rates of Exchange were:
l't December 2007 $1.00:Rs.4.6
3l't December 2007 41.00:Rs.4i3
Averase $1. 00 :Rs.47
Machinery is depreciate
@ r0% and the branch manager is entitled to a ission of 5o/o on the profit of the
branch.
You are required to:
l. prepare the branch tradirlg & profit & Loss a/c in l)ollars
convert the trial balance 0f the branch into India cunency and prepare Trading &profit and Loss alc and
the branch alc the books of head office. -1lMay -2008) Marks 16
O. No.37
The London Branch of o4fice Export House sent the follorving Trial Balan as on3l-12-19X3

fDr.
Fixed Assets I ,500
l8%oLoan (taken to purchflse fixed assets
13,000
Depreciation 2
Stock 1-1-19X3 8
Goods from H.O.
,800
Sales
1,05,200
Salaries & Wages I ,200
Interest 2 880
Cash at Bank 1 700
Debtors 2 ,200
H.O. Account 9,780
I 27,980 1,27,990
Fixed Assets were purchased on l-l-19x1 when f,r:Rs.25.50, life was est ated to be 10 Years.
Exchange Rates: Average of lgXl f l:Rs.25.70
3t-\2-t9xl f, 1:Rs.26.10
Avepage of l9X2 f, l=Rs.26.20
3l-t2-19x2 f, l=Rs.26.40
Avefage of 19X3 f 1:Rs.36.50
3t-12-19X3 f,l:Rs.42.20
In the Head Office books London Branch A/c as follows:

I32l
 Accountin For Branch CA. Ra Adhikari

To Balance b/b 1,84,800 By Bank 20,44,730

To Goods 2r,46,200 By Balance 4,12,716
To P&L A/c 1,26,446
Exchange gain
24,57,446
Closing Stock: f,2,400
You are required to showl
(D Branch Trial Balance in Rupee Terms, (ii) Brarrch P &L AIC (ii ) Adjustment Entries to incorporate
branch balances in the H.O. books. Ans-Profit Rs. Ex loss 3,02,136

Q. No.38
A Nepal company has an Integral foreign operation at War;hington. It's Tri I Balance as 30tr September, 2002is
as follows:

Plant and machiner! 1,20,000

8,000
56,000
2,40,000
4,16,000
Goods from Nepali Co. (H.O.) 80,000
Wages 2,000
Carrrage inward 1,000
Salaries 6,000
Rent, rates and taxe$ 2,000
Insurance 1,000
Trade expenses 1,000
Head Office a/c 1,14,000
Trade debtors 24,000
Trade creditors 17,000
Cash at bank 5,000
Cash in hand 1,000
US$ 5,47,000
The following fur[her information rs glven:
(1) Wages outstarfding-$ 1,000.
(2) Depreciate Pl{nt and Machinery and Furniture and fixtures @ I per cent p.a
(3) The Head Office sent goods to Branch for Rs.39,40,000.
(4) The Head Offlce shows an amount of Rs.43,00,000 due from B ch.
(5) Stock on 3Oft peptember,2002-$52,000.
(6) There were nq in transit items either at the startt or at the end of year.
(7) On Septembe{ I,2000, when the fixed assets were purchased, rate of exchange was Rs.38 to one
$.
On October 1.2001. rate was Rs.39 to one $.
On September 30)2002, the rate was Rs.41 to one if.
Average rate duri{rg the year was Rs.40 to one $
You are asked to Prepare:
(a) Trial balance inc(rporating adjustments given under I to 4 above into rupees;

t33l
 Accountin For Branch CA. Ra Adhikari
(b) Trading and Profit and Loss Account for the Year ended 30tr Septelprber ,2002 and Balance Sheet as on
that date depicting the profitability and net positiorn of the branch af would appear in Nepal for the
purpose of incorporating in the main Balance Sheet.
Ans-Ex,gain J,00,000 Gp 2g,gg,0oo Np 27,01,600
Q. No.39
The New York Branch of fine Textiles. Delhi sent the followine Trial ce as on 3ltt
December, 19X9.

Fixed Assets 1,20,000

Stock, I't January, l9x9 56,000
Goods from H.O. 3,20,000
Sales 4,20.000
Expenses 25,000
Debtors and Creditors 24,000 17,000
Cash at Bank 6,000
H.O. Account 1,14,000
5,51,000 5,51 ,000
In the H.O .Books the Branch Account stood as shown below:
New York Branch .Account
Dr.Rs. Cr.l s.
To Balance b/d 10,05,000 By Cash 26,( 3,000
To Goods sent to Branch 24,63,000 By balance c/d 8,6( 000
34,68,000 34r( 9,000
Goods are invoiced
voiced to the Branch at cost Plus 10% and Branch has instruct rns to sell att invoice price plus 25%.
Fixed assets were acquired on l't Jar
January 19X1 when $ 100:Rs.380. Rate f exchange rwere:
I't January 19X9 $ 100:Rs.760
3 I't December 19X9 $ I 00 =Rs. 770
Average $ 100:Rs.750
Fixed assets have to be depreciated by l0 Yo and the Branch Manage is entitfed to commission of 5Yo on the
profit of the Branch (on invoice price basis).
You are required to convert the Branch Trial Balance into rupees and preparte the Branch Trading and Profit &
Loss Account and the Branch Account. Ans-Loss 59.595
O. No.40
A Nepali company moon star has a branch at Virginia (USA). The branch is a non -integral foreign operation of
the Nepali company. The trial balance of the branch as at'.11't march, 2012|s as follows.

US$
Dr. Cr
Office equipment's 48.000
Furniture and fixtures 3.200
Stock(April 1,201l) 22.400
Purchases 96.000
Sales r.66.400
Goods sent from head office 32.000
Salaries 3.200
Carriase inward 400

[34]
 Cha r-2 Accoun .For Branch
Adhikari
rates and taxes
Insurance
Trade
Head office account
Sundry debtors
Sundry creditors
Cash at bank
Cash in hand

The following further information are given:

l) Salaries outstanding $400

2) Depreciate office equipment and furniture and fixfures at l}%op.a.
a written down values.
3) The head office sent goods to branch for NRs..15.gi0.000
4) The head office shown an amount of NRs. 20,50,000 due from
s) Stock on 31'tmaroh, 2012-521.500.
6) There were no transit items either at the start or at the end of the
7) on April l, 2010 when the fixes assets were purchased the rate
of e change was NRs. 43 to l$.on April
1,2011, the rate was NRs. 47 per $.on march 3l,2rJl2,the rate was Rs.
50 per 1$.averagerate during
the year was NRs.45 to $1.

Prepare:
a) Trial balance incorporating adjustments given converting dolor into
b) Trading, profit and loss account for the year ended ,3l't march. w20l
and balance sheet as on date
depicting the probability and net position of the branch as would rin the books ofNepali company
for the rupees' of incorporating in the main balance sheet.
Ans-Profi t 11,02,100, Foreign Exchange Flu ctu artion Reserve

O. No.41

ABCD Delhi has a branch in new york USA The branch is an integral for operation of the company.at the
end of 3 I't march 2013, the following ledger balances have been extracted
the book of the Delhi office and
the new York branch:

Delhi(in thousands New York(in thousa

Reserves and surplus

Buildine(cost

Plant and machi

Plant and machiner
Trade receiv
Stock (0r-04-2012)

Cash and bank balances

Goods sent to branch

Managing directors

[3s]
 llor Branch CA. Raian Adhikari

The following information is also available:

1) Stock asat3t-03e-13
Delhi-200000
New Yorlt-$10 (all stock received from De{hi)
2) Head office always send goods to branch office at cost plus 25%o
3) Provision to be nlade at doubtful debts at 5%.
4) Depreciation is to be provides on building at 109/o and,on plant and ies at 20%o on written down
values.

You are required to

a) To convert the branch trial balance into rupees, using the following
te of exchange
Opening rbte: l$:Rs 50
Closing rate: 1$:Rs 55
Average rate: l$:Rs 52
For fixed assets: l$:Rs 45
b) To prepare the trading and profit and loss account lbr the year 3 I't march,20 I 3,showing the extent
possible, head office results and branch office resullts separately
Ans-Foreign Excfrange Loss 558 Gp Ho r,675 Biranch r,514.55 Profit HO 1,534.89 Branch
4.393.55
Additional Questions for P
O. No.42
Gopal Prashad invoices goods to its branch at cost, plus 20%. The nch sells goods for cash as well
as on credit. The branch meets its expenses out of cash collect from its debtors and cash sales
and remits the balance of cash to heacl office after withholding
Rs. 10,000 necessary for meeting immediate rrequirements of ash. On 3lst Ashadh,
2074 the
assets at the branch were as follows:

During the accounting year ended 31st Ashadh, 2075 the invoi price of goods dispatched
by the
head office to the branch amounted to Rs. 1 crore 32 lakhs. of the goods received by it, the
branch sent back to head office goods invoicecl at Rs.72.000. Other transactions at the branch
during the year were as follows:

t36l
 Accountin For Branch

Cash Sales
9,700
Credit Sales 3,r40
Cash collected by Branch from Credit Customers 2,842
Cash Discount allowed to Debtors 58
Returns by Cus[omers r02
Bad Debts written off 37
Expenses paid by Branch 842

on lst Baishaktr, 2075 the branch purchased new furniture for I lakh for which PaYment was
made by head office through a cheque.
On 3l st Ashadh, 207 5 branch expenses amounting to Rs' 6,000 outstanding and cash in hand
was again Rs. [0,000. Furniture is subject to depreciation ( l6Yo per annum on diminishing
balance method.
Prepare Branch Account in the books of head office for the year 31st Ashadh,2013.
Ans-1.096

O. No.43

Give Journal Erirtries in the books of Head Offir;e to rectify or ust the following:

(i) Goods sent to Branch Rs. 12,000 stolen cluring transit' manager refused to accePt
any liability.
(ii) Branch paid Rs. 15,000 as salary to the officer of Head ice on his visit to the branch.
(i ii) On 28th Ashadh, 2075, the H.O' dispatched goods to Branch invoiced at Rs. 25,000
which was not received by Branch till 31st Ashadh, 207
(iv) A remittance of Rs' 10,000 sent by the branch on 30th ,2075, received bY the Head
Office on lst Sharwan,2075'
(v) Head Offlce made payment of Rs' 25,000 for purchase f goods by Branch and wronglY
debited its own Purchase account.

O. No.44
Show adiustmpnt Journal entry in the books of Head O at the end of Ashadh, 2075 for
incorporation Of inter-branch transactions asisuming that onl Head Office maintains different
branch accounts in its books'
A. Dharan Branch:
1) Received goods from Madi - Rs. 35,000 and Rs' 15,000 f
Kathmandu.
2) Sent goods to Chitwan - Rs.25,000, Kathmandu - Rs' 20 000.

3) Bill Receivable received - Rs' 20,000 fro'm Chitwan'

4) Acceptances sent to Madi - Rs.25,000, I(athmandu - Rs 10,000.

B. Madi Branch (apart from the above) :

5) Received goods from Kathmandu - Rs' I 5,000, Dharan Rs.20,000.

6) Cash sent to Dharan - Rs. 15,000, Kathnaandu - Rs' 7,

C. Chitwan Branch (apart from the above) :

Received goods from Kathmandu - Rs' i!0,000'

7)
Rs. 1 0,000 resPectivelY.
S) Acceptances and Cash sent to Kathmanclu - Rs' 20,000
D. Kathmandu Branch (apart from the above) :
9) Sent goods to Chitwan - Rs. 35,000'
t37l-
Chapter-2 Accounting For Branch CA. Rajan Adhikari

l0) Paid cash to Chitwan -- Rs.15,000.

I l) Acceptances sent to Chitwan - R.s.15,000.

Q. No.45

Give Journal Entries in the books of Branch A to rectify or adjust the following:
vii. Head Office expensies Rs. 3,500 allocated to the Branch, but not recorded in the Branch
Books.
viii. Depreciation of branch assets, whose acr:ounts are kept by the Head Offi,ce not provided
earlier for Rs. 1,500.
ix. Branch paid Rs.2,000 as salary to a H.O. Inspector, but the amount paid has been debited
by the Branch to SalLaries account.
x. H.O. collected Rs. 10,000 directly from a customer on behalf of the Branch, but no
intimation to this efifect has been received by the Branch.
xi. A remittance of Rs, 15,000 sent by the Branch has not yet been received by the Head
Office.
xii. Branch A incurred a.dvertisement expenses of Rs.3,000 on behalf of Branch B.
O. No.46

M/s SH Enterprise commenced business on 1.4.2074 with Head Office at Makwanpur and a Branch
at Chitwan. Purchases \ /ere made exclusi'vely by the Head Office, where the goods were
processed before sale. There was no loss or wastage in processing.
Only the processed goods r,eceived from Head Crffice were handled by the Branch. The goods were
sent to branch at processed cost plus 10%.
All sales, whether by Head Office or by the Branch, were at uniform gross pro:ht of 25% on their
respective cost.
Following is the Trial Balance as on 31.3.2075.
Head Office . :r:, :' ' BfanCh
Dr Cr. Dr. Cr.
R' Rs. Rs. Rs.

laoital 0.000
3. r
ioods sent to Branch 9.24.000
)rawings 55,000
)urchases 19,69,500
Cost of processing 50,500
iales 12,80,000 8,20,000
ioods sent to Branch 9,24,000
Admin istrative expenses 1,39,000 15,000
Selling expenses 50,000 6,200
Debtors 3,09,600 1,13,600
Branch Current account 3,89,800
Creditors 6,07,400 10,800
Bank Balance 1,52,000 77,500
Head Office Current account 2,61,500
Goods received from H.O. 8,80,000
31.1s,400 31.15.400 10.92.300 lqe2.300

t3Bl
Chapter-2 Accounting For Branch CA. Rajan Adhi kari

Following further information is provided: ,

(i) Goods sent by Head Office to the Branch in Ashadh, 2075 rf Rs. 44,000' vere not received
by the Branph titl2.4.2075.
(ii) A remittanoe of Rs. 84,300 sent by the Ilranch to Head Office was al so similarly not
received upto 3 I.3.207 5.
(iii) Stock takijng at the Branch disclosed a shortage of Rs. 10,000 (at sel ing price to the
branch).
(iv) Cost of unprocessed goods at Head Office on 31.3.2013 wr s Rs. 1,00,000
Prepare Trading and Profit and Loss account in columnar forn and Balance Sheet of the
business as a whdle as at 3l .3.207 5 Ans- Ho. 1,28,091, Branch. I

Q. No. 47

Laxmi trading, with its Head Office at Mugling has a branch at \epalgunj. Gr rods are invoiced to
t,
the Branch at cest plus 33-Il3%. The followinLg information is given in respe ct ofthe branch foor
the vear ended 31st Ashadh.2075:

Rs.
Goods sent to pranch (Invoice price) 4,80,000
Stock at Branclh on I.4.2074 (Invoice price) 24,000
Cash sales 1.80.000
Return of soods bv customers to the Branch 6.000
Branch expenses (paid in cash) 53,5 00
Branch debtors balance on 1.4.2074 30,000
Discount allowed 1.000
Bad debts 1,500
Collection frorn Debtors 2,70,000
Branch debtors cheques returned dishonoured 5.000
Stock at Branch on 31.3.2075 (Invoice price) 48,000
Branch debtors balance on 3 1 3.2075 36,500
?repare, under the Stock and Debtors system, the following Ler ger Accounts the books of the
-Iead Office:

:i) Nepalgunj Branch Stock Account

:ii) Nepalgunj Branch Debtors Account
'iii) Nepalgunj Branch Adjustment Account.
{lso compute shortage of Stock at Branch, if any. Ans 56,000
O. Nt r.48
R aju and Sanju of Mustang started a branch at llhairahawa on .4.2074 to whi ch goods were sent
sel
al 20% above cost. The branch makes both oash sales and , redit sales. E iranch expensesi are
ar
n: et from branch cash and balance money remitted to H.O. Th : branch does r rot maintain doubl
uble
el rtry books of acpount and necessary accounts rerlating to branch lre maintained in H.O. Followinving
fr rrther details are given for the year ending on3I.,3.2075:.
j tlhr, ,*
'Ii
lit.rtt' i
"

[3e]
 Accoun IFor Branch n Adhikari
Cost ofgoods sent to branch 1,00,000
Goods received by branch till 31.3.2075 at Invoice price 1,08,000
Credit sales for the year 1,16,000
Closing debtors on 31.3.207 5 41,600
Bad debts written off during the year 400
Cash remitted to H.O. 86,000
Closing cash on hand at branch on31.3.2075 4,000
Cash remitted by H.O. to branch during the year Closing
6,000
stock in hand atbranch at invoice price Expenses inourred 12,000

Draw up the necessary Ledger Accounts like Branch De Account, Branch Stock Account.
Goods sent to Branch Account, Branch Castr Account. B Expenses Account and Branch
Adjustment A/c for ascertaining gross profit ancr Branch profit Loss A/c for ascertaining Branch
profit. Ans- 45,600
O. No.49

Ncell with headquarters at Makwanpur, maintains a branch at rkha. Goods are invoiced at
cost plus 25%. ln respect of Goa branch, the following inform tion pertaining to the year
ended
3 1st Ashadh,207 5 are made available to you:

Goods sent to Branch (at Invoice price) 6,75,000

Goods retumed by branch during the year (at Invoice price) 24,000
Cash sales effected by branch 1,85,000
Discount allowed to customers 2,500
Amount received from branch debtors 3,25,000
Cheques of customers which got dishonoured 9,000
Branch expenses met in cash 72,500
Sales return at Goa branch 10,000
Bad debts 5,500

Branch debtors 1,05,000

Stock at branch (at Invoice price) 2,36,000
Adopting the Stock and debtors system, you are required to prepare following Ledger accounts, as
appearing in the books of the Head Office:
(i) Gorkha branch debtors account;
(ii) Gorkha branch adjustment account;
(iii) Gorkha branch profit and loss account. Ans- 32,500

O. No.50

Biksh Traders, having head office at Makwanpur has a branch at epalgunj. The head office does
wholesale trade only at cost plus 80%. The goods are sent to branch the wholesale price viz., cost plus
80%. The branch at Nepalgunj is wholly engaged in retail trade and goods are sold at cost to H.O. plus
r00%.
Following details are furnished for the year ended 3 l st Ashadh,

[40]
Chapter-2 Accounting F or Branch CA. Raian Adhikari

Opening stock (as on 1.4.2074) 2,25,000

Purchases 25,50,000
Goods sent to branch (Cost to H.O. plus 80%) 9,54,000
Sales 27 ,81,000 9,50,000
Office expenses 90,000 8,5 00
Selling expenses 72,000 6,300
Staff salary 65,000 12,000

You are required to prepare Trading and Prol'it and Loss Account of the heeLd office and
branch for the year ended 3 I st Ashadh, 207 5. Ams- Ho 1,38,900, Branch 68,200
Q. No. 51

Pawan, of Dharan has a branch at Janakpur. Goods are invoiced to the branch at cost pl:us 25o/o.
The branch is instructed to deposit the receipts everyday in the head office acco,unt with the bank.
All the expenses are paid through cheque by the head office except petty cash expenses
which are paid by the Branch.
From the following information, you are requrired to prepare Branch Accounrt in the books of
Head office:

Rs
Stock at invoice price on 1.4.2074 1,64,000
Stock at invoice price on 3I.3.2075 1,92,000
Debtors as on 1 .4.2074 63,40r0
Debtors as on 3 1.3.207 5 84,30t0
Furniture & fixtures as on I .4.2074 46,80r0
Cash sales 8,02,60rJ
Credit sales 7,44,20tJ
Goods invoiced to branch by head olfice 12,56,00tJ
Expenses paid by head office 2,64,001J
Petty expenses paid by the branch 20,901)
Furniture acquired by the branch on 1.10.20'74 (payment was 5,00t1
made by the branch from ,cash sales and collection from debtors)
Depreciation to be provided on branoh furniture & fixtures @ l0% p.a. on WDV basis.
Ans- 2,74,570

Q. No.52

Raman of Chitwan has a branch at Narayangarlt to which office, goods are invoiced at cost plus
25%. The branch makes sales both for cash and on credit. Branch expenses are paid direct from
Head Office and the branch has to remit all car;h received into the Head Office Bank Account at
Narayangarh.
From the following details, relating to the year 2074-75, prepare the accounl.s in Head Office
Ledger and ascertain Branch Profit as per stock and debtors method. Branch does notmaintain
any books ofaccounts, but sends weekly returns to head office:

[41]
 For Branch CA. Adhikari
Goods receive I from head office at invoice priiE- 1,20,000
Returns, to hea I office at invoice price
2,4AA'
Stock at N[gp rr branch on 1.4.2074 at invoice price 12,000,
Sales during tl e year - Cash
40,000
Credit 72,000
Debtons at Na1 pur branch as on 1 .4.2074 14,400
Cash receiVed iom debtors 64,000,
Discounts bllo ved to rdebtors 1,200..
Bad debts duri rg the year 800
Sales returhs a Nagpur branch 1,600,
Salaries and w rges at branch 12,000
Rent, rates anc taxes at branch 3,600,
Office expgns( ; at Nagpur branch 1,200:)
Stock at brbncl on 31.03.2075 at invoice price 24,000 |

O. Nr r.53 . Ans- 7rI 20

Following ip tt s information of the Jumla branch of Suraj o New Road for the year
ending
31st March, 20 3 from the following:

il) Goods arfe ir voiced to the branch at cost plus 20yo.

'2) The sale pri<
e is cost plus 50%.
'3) Other
inf'orn ation:

StoQk a on 01.04.2074 (invoice price)

,20,000
Goqds r ent during the year (invoice price) 1,00,000
Salqs dr ring the year 2,00,000
ExpBnsr s incurred at the branch 5,000
Ascertaiir
(i) the prc fit earned by the branch during the year
(ii) br4nch stock reserve in respect ofudrealized profit. A 1,95,000
O. No ,54
(YZ is having il ; Branch at Kailali. Goods are invoiced to the br rch
at 20% pr ofit on sale. Branch
ras been insfruc ted to send all cash daily to head office. All Kpenses are raid
I by head office
xcept petty 9xpl nses which are met bythe Branch Manager. Fror the following particulars prepare
,ranch accoqnt i r the books of Head Office.

I42l
 For Branch CA. Raian Adhikari
Stock on lst Sharwan 2074 30,000 Discount all to debtors 160
(invoice price) Expenses pai by head office:
SundryDebtors on lst Sharwan2074 19,000 1,800
Cash in hand as on lst Sharwan2074 800 3,200
Office furniture on lst Sharwan2074 3,000 Stati & Printing 800
Goods invoiced from the head Petty ex paid by the
offrce (invoice prioe) 1,60,000 branch 600
Goods return to Hoad Office 2,000 Depreciation be provided
Goods return by ddbtors 96(l on branch fu iture at l0%p.a.
Cash received from debtors 60,000 28,000
Stock on 3 lst
Cash Sales 1,00,00[) (at invoice pri
Credit sales 60,00cf

Ans- 24,180
O. No. 55

Pass necessary Journal entries in the boolcs of an endent Branch of a Company,

wherever requirbd, to rectify or adjust the following:
(D Income of Rs. 2,800 allocated to the Branch bv Head Offi e but not recorded in the Branch
books.
(ii) Provision for doubtful debts, whose accounts are kept by th Head Office, not provided earlier
for Rs. 1,000.
(iii) Branch paid Rs. 3,000 as salary to a Head Office r, but the amount paid has been
debited by the Branch to Salaries Accoumt.
(iv) Branch incurred travelling expenses of Rs. 5,000 on half of other Branches, but not
recorded in the books of Branch.
(v) A remittance of Rs. 1,50,000 sent by .the Branch has received by Head Office on the
date of reponciliation of Accounts.
(vi) Head Office allocates Rs. 75,000 to the Branch asH Office expenses, which has not
yet been recorded by the Branch.
(vii) Head Office collected Rs. 30,000 directly from a Brar Customer. The intimation of the
fact has been received by the Branch onlr, now.
(viii) Goods dispatched by the Head office arnounting to Rs. 0,000, but not received by the
Branch till date of reconciliation. The Goodr; have been recei subsequently.

O. No.56
On 3lst Ashadh, 2075, the following ledger balances have n extracted from the books of
Washington branch office of A Ltd whose Head Office is in M anpur:

Building I B0'
Stock as on I .4,2011 26
Cash and Bank Balances 57
Purchases 96
Sales 110
Commission reoeipts 28
Debtors 46
Creditors 65

You are required to convert above Ledger balances into Nepali

Use the following rates of exchange:

[43]
 Accounting For Branch

Ili, per $
Opening rate 46
Closing rate 50
Average rate 48
For fixed assets 42

Q. No.57

UFO has a branch at Washington. Its Trial Balance as at 30th september, 2012 is as follows:

. ,us$
Plant and machinery 1,20,000
Furniture and fixtures 9,000
Stock, Oct.l,20ll 56,000
Purchases 2,40,A00
Sales 4,16,000
Goods from Omega (H.O.) 80,000
Wages 2,000
Carriage inward 1,000
Salaries 6,000
Rent, rates and taxes 2,000
Insurance 1,000
Trade expenses 1,000
Head Office A/c 1,14,00tJ
Trade debtors 24,000
Trade creditors 17,000
Cash at bank 5,000
Cash in hand 1.000
s.47.000 5.,17.00|i

The following further information is given :

(l) Wages outstanding - $ 1,000.
(2) Depreciate Plant and Machinery and Furniture and Fixtures @ 10 % p.a.
(3) The Head Office sent goods to Br:rnch for Rs. 39,40,000.
(4) The Head Office shows an amount of Rs.43,00,000 due from Branoh.
(5) Stock on 30thr September,2012 - i$ 52,000.
(6) There were no in transit items either at the start or at the end of the year.
(7) On September 7,2010, when the frxed assets were purchased, the rate of exchange
was Rs. 38 to one $.
On October l,2011, the rate was Its. 39 to one $,
On September 30, 2012, the rate was Rs.41 to one $. Average rate during the year
was Rs.40 to one S.

You are asked to prepare:

(a) Trial balance incorporerting adjustments gi'ven under I to 4 above, converting dollars into
rupees.
(b) Trading and Profit and Loss Account for the year ended 3Oth September, 2012 andBalance
Sheet as on that date depicting the profitability and net position of the Branch as Would appear
in Nepal for the purpose of incorporating in tlhe main Balance Sheet
144l
Chapter-2 Accounting F,or Branch _ CA. Rajan Adhikari

O. No. 58

The Washington branch of XYZ Mahabaudha sent the following trial balance as
on 3l st December. 2012:
-:
Head office A/c 22,900
Sales 84,000
Debtors and creditors 4,900 3,400
Machinery 24,000
Cash at bank 1,200
Stock, 1 January,2012 11,200
Goods from H.O. 64,000
Expenses 5.000
1r10.200 r.to:oo
In the books of head office, 1.he Branch A/c stood as follows:
-
Washington Branch A"/c

To Balance b/d Ilv Cash 29,76,000

To Goods sent to branch Ilv Balance c/d _E 6AJ0q

24 24 nf|'|

Goods are sent to the branch at cost plus 10% and the,branch fells goods at invoice priceplus
25Vo. Machinery was acquired on 3 l st January ,2007 , when $ 1.p0 : Rs. 40.
Rates of exchange were:
l St Ianrrarv 20.1 ? $ 1.00 : Rs.46
? 1 St T)cncrnhct )0'l) $ 1.00 : Rs.48
Average $ 1.00 Rs.47
Machinery is depreciated @ l0% and the branc,h manager is entitled to a commission of 5Yoon
the profits of the branch.

You are required to:

(i) Prepare the Branch Trading & Profit & Loss A/c in dollars.
(ii) Convert the Trial Balance of branch into Indian currency an{ prepare Branch Trading & Profit
and Loss Alc and the Branch A/c in the booksi of head office.

O. No. 59

DG of Delhi has a branch in London which is an integral forei$n operation of DG. At the end of
the year 31st March ,2011, the branch furnishes the following triprl balance in U.K. Pound:

n
Particulars ,L Ju

[4s]
Chapter-2 Accounting For Branch CA. Raian Adhikari
Fixed assets (Acquired on lst April, 2007) 24,000
Stock as on 1st April,20l0 11,200
Goods from head Office 64,000
Expenses 4,800
Debtors 4,900
Creditors 3,200
Cash at bank 1,200
Head Office Account 22,8C10
Purchases 12,000
Sales 96J9!
L22.040
In head office books. the brranch account stood ils shown below:
London Branch A/c
'Particulars l\mount
Rs.
To Balance B/d By Bank A/c
To Goods sent to branch B y Balance C/d

The following further information is given:

a) Fixed assets are to be depreciated @ 10o,6 p.a. on WDV.
b) On 3l st March ,2010:
Expenses outstanding -f
Prepaid expenses f
Closing stock -f.
c) Rate of Exchange:

lst April, 2007 - Rs.70 to f, I

1st April,2010 - Rs.76tof.l
3 I st March ,2011 - Rs. 77 to f,l
Average - Rs.75 to f. I
You are required to prepare:
(l) Trial balance, incorporating adjustments of outstanding and prepaid expenses,
converting U.K. pound into Indian rupees.
(2) Trading and profit and loss account for the lrear ended 31st March,20ll and the Balance Sheet
as on that date of London branch as would appear in the books of Dharan head office of
DG
O. No.60
A company has three branches at Thimi, Kapan and Gwarko. The Head Office at Newroad
purchases goods and sends them to branches, to be sold at a uniform percentage ofprofit on cost.
The following particul ar are made available to you to enable you to prepare a combined Trading
Account for the year ended 31't Ashadh, 207l.
Newroad Thimi Kapan Gwarko
Rs. Rs. Rs. Rs.
Stock on l't Shrawan,2070 54,000 16,000 12,500 10,000
Purchases in the year 274,000

[46]
 tr'or Branch an Adhikari

Sales 180,000 120,000 100,000

Stock on 3 l'LAshadh, 207 | 6,000 5,000 , 2,500
Branch Accounts qn l't Shrawan,2070:
Thimi 15,000
Kapan 32,000
Gwarko 4.000
Remittances from Branch 320,000 150,000 100.000 70.000
Newroad Office inyoices goods to the branches at fixed sales prices t maintains branch accounts in
its ledgers at cost price.
(RTP Dec-14)

O. No. 61
Abhinav Enterprisgs has a retail branch at Pokhara. Goods are sold the customers at Cost
plus 100%. The wholesale price is cost plus 80%. Gioods are invoi to Pokhara at wholesale
price. From the following particulars, find out the profit made at H office and Pokhara for
the year ended 31st Ashadh2070 :
Head Office Pokhara

Stock as on lst Shrr,awan 2069

Rs.
225,000 I'
Purchases 2,150,000
Goods sent to branph at invoice price 954,C)00
Sales 2,853i,000 nro,oro
Stock as on 31st Afhadh 2070 260,C|00 99,000
Sales at Head Offiqe are made only on wholesale barsis and thatat only to consumers.
Stock at branch is ri'alued at invoice price. ( June 20t14)(3 Marks)

O. No.62
A Kathmandu based Shop opens a new branch in Biratnagar which independently of the
head office. The transactions at the branch for the vear ended 3 I st 2013 are as under:
(Rs.)
Goods supplied by head office 200,000
Purchases from outsiders:,
Credit 155,
Cash 30,000 185,500
Sales:
Credit 250,5
Cash 46,000 296,500
Cash received from customers 304,500
Cash paid to creditprs 142,540
Expenses paid to cfeditors 89,500
Furniture purchase{ by the branch on credit 35,000
Cash received from head office initially 40,000
Remittances to head office 110,000
Prepare the branch final accounts after taking the folllowing into
i) Write off depreci4tion on furniture at5%o per annum for full year.
ii) A remittance of Rs. 20.000 from the branch to the head office is i
iii) The values its cfosing stock at Rs. 120,000
(December 2014)(20 Marks)

O. No. 63
Gajani Limited opetrates a number of retail outlets tcr which goods invoiced at wholesale
ptice which is cost plus25%. These outlets sell the goods at the retail price which is wholesale
[471
 an Adhikari
price plus 20Yo.
Following is the information regarding one of the outllets for the year
ended 2l_3-2012:
Particulars
Rs.
Stock at the outlet l-4-2011
30,000
Goods invoiced to the outlet during the year
324,000
Gross profit made by the outlet
60,000
Goods lost by fire ?
Expenses of the outlet for the year
20,000
Stock at the outlet 3l-3-2012
36,000
You are required to prepare the following accounts in the books
of Gajani Limited for the year
ended 3l-3-2012:
i) Outlet Stock Account
ii) Outlet Profit & Loss Account
iii) Stock Reserve Account
(December 2012)(10 Marks)

O. No.64
Pashupati Stores Pvt Ltd with its head office at Kathmarrdu, invoiced goods
to its
branch at Gajuri at20Yo less than the list price which ir; cost plus 100%,
with
instruction that cash sales were to be made at invoice price and credit
sales at list
price.
From the following particulars available from the branch, prepare
Branch Stock
Account, Branch Adjustment Alc, Branch profit and Loss A li andBranch Debtors
A/c for th nding 31st
enql st unal
Chaitra.207 4.
Particulars Rs. Rs.
Stock on lst Baishakh, 2074 ( invoiore p.icri
6.000
Debtors on 1't Baishal&.2074
5,000
Goods received from Head Office (invoice price) 66.000
Sales
Cash 23.000
Credit 50.000 73.000
Cash received from debtors 42.8t7
Expenses at branch 8,693
Debtors on 31,1 Chaitra.2074 12.183
Stock on 31't Chaitra,2074 (invoice price) 8.800
Remittance to Head Office 60.000
(June 2018X 10 Marla)

[48]