49 Petty Cash Cash To Goods sent to Branch Debtors To Bank Alc Petty Cash Salaries Fixed Assets Rent Prepaid Expenses Sundry Expenses By Profit and Loss Alc-Loss To Profit & Loss AlcProfit (if debit side is larger) (if credit side is larger) Note: 1. Having credited the Branch Account by the actual cash received from debtors, it would be wrong to debit the Branch Account, in respect of discount or allowances to debtors. 2. The accuracy of the trading results as disclosed by the Branch Account, so maintained, if considered necessary, can be proved by preparing a Memorandum Branch Trading and Profit & Loss Account, in the usual way, from the balances of various items of income and expenses contained in the Branch Account Illustration 1 Fanna Cloth Mills opened a branch at Mumbai on 1 April, 2011. The goods were invoiced to the branch at selling price which was 125% of the cost to the head office. The following are the particulars of the transactions relating to branch during the year ended 31st March, 2012 42.12,600 18,76,050 26,61,450 Goods sent to branch at cost to head office Sales, Cash Credit Cash collected from debtors Discount allowed to debtors Returns from debtors Spoiled cloth in bales written off at invoice price Cheques sent to branch for: Rent Salaries Other Expenses 45,37,500 23,55,000 23,550 15,000 7.500 1.08,000 2.70,000 52,500 4.30,500