3. OM Ltd. Delhi invoices goods to its Mumbai and Kolkata branch offices at 20% less than the list price which is cost plus 50% with instructions that cash sales are to be made at invoice price and credit sales at list price. Opening Stock at Mumbai at its cost * 76,800. Goods Sent to Mumbai (at cost to Delhi) 1,10,000. Cash Sales 74.8% of Net Credit Sales. Goods returned by Credit Customers to Mumbai 45,000. Goods returned by Mumbai to Delhi * 36,000. Loss of Goods by fire (at invoice price) { 3,000 against which 80% of cost was recovered from the insurance Company. Loss of Goods at Mumbai through normal pilferage (at list price) *3,000. Debtors at Mumbai: Opening + 10,000, Closing ? 11,000 Cash remitted by Mumbai Branch to HO: 1,62,435. Discount Allowed to Debtors 13,365. Goods received by Mumbai till close of the year 1,27,000. Provision is to be made for discount on Debtors at 15% on prompt payments at year end on the basis of year's trend of prompt payments. 1 Cash remitted by HO to Branch for Expenses9,000. Branch Expenses still outstanding 741. Manager is entitled to a commission @ 6% of net profits after charging such commission. Required: Prepare Mumbai Branch Debtors A/c, Mumbai Branch Stock Account, Mumbai Branch Adjustment A/c, Mumbai Branch Expenses Account and Mumbai Branch Profit & Loss Account under Stock & Debtors Method. 12+4+4+1+2.75=13.75 Marks