A Supply of Goods at Cost Price Method following figures

at Bengaluru. From the

13. ) Nilgiri Ltd., Chennai, opened aa new branchbooks and
relating to the
prepare Branch
branch, write necessary entries in the
of the company Account to
ascertain the profit earned there.

Goods sent to Branch 5,000

Cash sent to Branch 800
Cash Sales at Branch 7,000
Branc
no stock of unsold goods at the end with the
The branch was advised to sell goods onlv for cash. There was [Ans. Branch Profit 1,2001
14. Ltd., Bengaluru, opened a Branch at Hubli on 1st May, 2017. Frorn the fotlowing particulare
Mantons
Account and find out the profit or loss made by the Branch for the period endin
prepare Branch
30th April, 2018.
16,00
Goods Sent to Branch
Cash remittance to Branch for: 2,000
Salaries 480
Office Rent 320 2,800
Other Expenses
immediately) 22,000
Cash sales effected by the Branch (Remitted to H.0. 2,000
Stock of unsold goods on 30.4.2018
[Ans. Profit 5,200]
year ending 31.3.2018. Prepare Branch
15. From the following particulars relating to Surpur Branch for theAccount in the books of Head Office:
Account, Goods sent to Branch Account and Branch Debtors

8.900
Stock on 1.4.2017
 227

debtors on 1.4.2017 4,700

Branch
petty caash on 1.4.2017 20
Branch
sent to branch 28,400
Goods
Cashsales 15,800
Cr4editsales 40,400
Cash
received from debtors 37,900
Cash sent to branch for expenses:
Rent 2,000
Salaries 6,000
PettyCash
Stock branch on 31.3.2018 1,000
Petty Cash branch on 31.3.2018 5,400
30
Goods returned by branch 800
[Ans. Branch profit 16, 110 Closing debtors 7,200]
Erom the following particulars relating to Patna for the vear
accounts in the Head Office Books: ending 31st March, 2018. Prepare

Stock at Branch on 1st April, 2018

Branch Debtors on 1st April, 2018 17,800
Petty Cash at Branch on 1st April, 2018 9,400
40
Goods sent to Branch during the year
Cash sales during the year 56,800
Credit Sales during the year 31,600
Cash received from Debtors 80,800
Goods returned by the Branch 75,800
1,600
Cash sent to branch for expenses:
Rent
Salaries 4,000
Petty Cash 12,000
Stock at Branch on 31st March, 2018 2,000 18,000
10,800
Petty Cash at Branch on 31st March, 2018 60
[Ans. Closing Debtors 14,400 and Profit 32,220]
[Hint: Debtors Balance at the end of the period is not given which is to be ascertained by preparing Debtor's
Account]
17. Hindustan Co, Ltd., invoices goods to its Belagavi Branch at cost. The branch sells
as well as for cash. From the following details prepare the Branch Account, Branchthe goods on credit
Trading and Profit
and Loss A/c for the year ending 31.3.2018.

Stock 1.4.2017
Stock 31.3.2018 12,500
Debtors 1.4.2017 14,500
Debtors 31.3.2018 24,500
Branch 36,200
Goods supplied to 45,400
by Branch
Goods supplied 600
Petty Cash 1.4.2017
Petty Cash 31.3.2018 150
Branch for: 320
Cash remitted to
Rent 1,200
Salary 4,500
Petty Cash 1,000 6,700
228 Wancial Accounting
Cash Sales
Cash received from customers 32,32,860000
Discount allowed to customers
Bad debts 1,500
Goods returned from customers
[Ans. N.P. 27,700, Credit Sales 2,to300
ascertained by preparing branch debtors48,500accountbe]
18.) From the following information, prepare the Branch Account in the books of the Head Office and

collection of the branch are remitted to Head office:

Cne daily

Stock 31.3.2018
Stock on 1.4.2017
1,275,5,000000
Debtors on 1.4.2017 50,000
Debtors on 31.3.2018
Goods sent to Branch
70,000
3,00,000
Cash Sales remitted to Head Office 1,00,000
Cash collected from debtors remitted
to H.0. 1,40,000
Goods returned from branch 30,000
Cash sent to branch for: 8,000
Salary 2,000 10,000
Rent
Petty Cash on 1.4.2017 100
Petty Cash on 31.3.2018 100
Discount allowed to customers 5,000
[Ans. Branch profit 30,000; credit sales 1,65,00
Stores Ltd. invoiced goods to its Surat Branch at cost. The branch maintained ite esl
19. The Union the Head Office. The branch expenses are being natd
ledger and remits all cash received daily to
paid by the Head Office by cheques.
by the Head Office. The branch expenses are being
following details relating to the branch show the branch account in the books of the Head
From the
Office.

13,100
Debtors (1.4.2017) 16,550
Debtors (31.3.2018) 7,500
Stock (1.4.2017) 6,950
Stock (31.3.2018) 25,400
Goods received from H.0. 350
Goods returned to H.0.
Cash sales and credit sales
46,770
60
Allowance to Debtors
24,600
Cash received from debtors 900
Rent, rates, etc. 3,000
Wages and Salaries 650
General trade expenses 290
Returns from customers 1,200
Discount allowed to customers 300
Bad debts
30,190|
[Ans. Net profit 14,480; Cash sales 16,580 (i.e., credit sales
 22
t Acounts
Price
sppy
of GoodsatInvoice
following information ascertain the credit sales to the branch customers and prepare
From the
AcCOuntin the books of the Head Office for the year ending 31.3.2018.
srandh
expenses are paid by the Head Office and daily collections of the Branch are remitted to
the the Office.
AllHead

Stockon 1.4.2017 75,000

stockon31.3.2018 1,25,000
Debtors on 31.3.2018 70,000
Debtors on 1.4.2017
50,000
Branch
Goods invoice to H.0.
3,50, 000
(ash sales remitted to 1,50,000
Debtors
(ash collected fromH.O. 1,40,000
Goods retumed to 25,000
Salary 8,000
Rent 2,000
Petty Cash on 1.4.2017 50
Petty Cash on 31.3.2018 100
ho Head Office charges goods to the
Branch at 25% above cost. 4,050
[Ans. Profit 80,050]
11. BK Ltd., Belagavii invoiced goods to its Gadag Branch at cost plus 25%. The branch is allowed to effect
hoth the ash and credit sales. Branch expenses are paid
received being remitted to Head Office Account by thedirectlybranch
from Head Office and all the cash
Transactions for the year ending 31.3.2018. regularly. The following are the

Goods sent to branch at invoice price

Retums to Head Office at ivoice price 40,000
Stock at branch on 1.4.2017 800
Credit sales for the year 8,000
Cash sales for the year 30,000
Debtors on 1.4.2017 18,700
Cash received on ledger accounts 5,200
Discount allowed to Customers 28,500
Bad debts written off 300
Returns from customers 500
Rent and rates 700
Salaries and wages 600
Sundry expenses 1,200
Stock at branch on 31.3.2018 300
Prepare Gadag Branch Account, Branch Debtors Account for the year 6,000
ending 31.3.2018.
[Ans. Closing debtors 5,200; General PIL
22, The Bharat Stores Ltd., Chennai has a branch at 12,140]
Ballari. Goods are invoiced to the branch at selling
price being cost plus 20% profit. The branch keeps
received daily to the credit of Head Office Account the own insales ledger and deposits all cash
expenses are paid by cheques from the Head Office.
opened the State Bank of India. All the
 ACCOunts
229
Sypply of Goods at Invoice Price
From
the following information
ascertain the credit sales to the branch
AcCOuntin the books of the Head
Branch customers and prepare
Office for the year ending 31.3.2018.
expenses are paid by the Head
AlL the Office and dally
the Head Office,
collectionsof the Branch are remitted to

stock on 1.4.2017
Stock on 31.3.2018
75,000
Debtors on 31.3.2018
1,25, 000
pebtors on 1.4.2017
70,000
Goods invoice to Branch 50,000
(ash sales remitted to H.o. 3,50,000
Cash collected from Debtors 1,50,000
Goods returmed to H,0, 1,40,000
Salary 25,000
Rent
Petty Cash on 1.4.2017 8,000
Petty Cash on 31.3.2018 2,000
50
Tho Head Office charges
go0ds to the Branch at 25% above 100
cost. 4,050
RK Ltd., Belagavi invoiced [Ans. Profit 80,050]
goods to its Gadag Branch at cost plus
both the cash and credit sales.
received being remitted to HeadBranch expenses are paid directly25%. The branch is allowed to effect
from Head Office and all the cash
Transactions for Office Account by the branch
the year ending 31.3,2018. regularly. The following are the
Goods sent to branch at invoice price
Returns to Head Office at
Stock at branch on 1.4.201Zinvoice price 40,000
800
Credit sales for the year 8,000
Cash sales for the year
Debtors on 1.4.2017 30,000
Cash received on ledger 18,700
accounts
Discount allowed to customers 5,200
Bad debts written off 28,500
300
Returns from customers 500
Rent and rates 700
Salaries and wages 600
Sundry expenses 1,200
Stock at branch on 31.3.2018 300
Prepare Gadag Branch Account, Branch Debtors 6,000
Account for the year ending 31.3.2018.
[Ans. Closing debtors 5,200;
22. The Bharat Stores Ltd., Chennai has a
branch at Ballari. Goods are
General P/L 12,140]
price being cost plus 20% profit. The branch keeps invoiced to the branch at selling
the own
received daily to the credit of Head Office Account opened in sales ledger and deposits all cash
expenses are paid by cheques from the Head Office. the State Bank of ndia. All the
230

From the following Financial Accountino

prepare the Branch Account and Branch Debtors
books of the particulars
Head Office: Account in the
Stock on 1.4.2017(at invoice
Debtors on 1.4.2017 price)
Petty cash on 1.4.2017 12,000
Goods invoiced from Head Office (at invoice price) 40,020000
Expenses paid by cheques from Head Office 6,000
Rates and Taxes
Sundry Expenses 600
Cash sales for the year 2,400
Credit sales for the year 60,000
Cash collected from debtors
Bad debts for the year 60,000
Stock on 31.3.2018(at invoice price) 80,000
Petty cash on 31.3.2018
4,000
18,000
[Ans. Branch profit 37,850, Closing 50
23. From the following particulars prepare the Branch Account and Goods Sent to debtors 16,000]in
Branch Account
the books of Head Office. The goods.are supplied at cost plus 25%.

Stock on 1.4.2017 at invoice price

Sundry debtors at branch on 1.4.2017 27,000
Petty cash on 1.4.2017 22,50060
Goods sent to branch during the year at invoice price
Cash sales 1,50,000
Credit sales 63,000
Goods returned by branch 1,11,000
Cash sent to branch for: 4,500
Salaries
Rent and other expenses 10,800
Petty cash 8,400
Cash received from debtors at branch 1,950
Discount allowed to debtors 1,18,200
Stock at branch on 31.3.2017 at invoice price 1,800
Petty cash on 31.3.2018 33,900
All cash received by the branch is 90
remitted to Head Office.
24. Bharat Traders opened a branch at Ballari on[Ans. Branch profit 40,200; Closing debtors 13,500]
plus 20% which is the selling price. 1.4.2017. Goods are invoiced to the
Following are the branch transactions during thebranch
year:
at cost

Goods supplied to the branch

Sales at branch: 45,000
Cash sales
Credit sales 13,000
Cash received from debtors 25,000
Discount allowed 18,600
Cash sent to branch for 400
Goods returned by branchexpenses 5,000
Closing stock at branch 3,00
Prepare the branch account in the books of 8,400
Head Office.
[Ans. Branch profit 4, 600]