X opened a branch at Calcutta on 1.7.2017. Goods are sent from the Head Office at cost plus 331/3%. The branch is adviced to deposit cash everyday in the bank in the Head Office. From the following particulars, prepare Branch Account in the books of Head Office for the period ending 31.12.2017. Petty cash at branch is maintained on imprest system.

Transcribed Image Text:

Particulars Cash sent to branch for expenses Furniture purchased for the branch Goods sent to branch at invoice price Expenses paid by the Head Office: ₹ 500 10,000 1,00,000 Particulars Received from Debtors Discount allowed Bad debts Returned by Debtors (invoice price) ₹ 16,000 300 100 800