Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bit Ltd is a computer supplies retailer with a branch St James. Goods are invoiced to the branch at cost plus 25%. The branch

image text in transcribed

Bit Ltd is a computer supplies retailer with a branch St James. Goods are invoiced to the branch at cost plus 25%. The branch remits all cash received to head office and all expenses are paid by the head office. The following information relating to the branch, is available: Branch Debtors on 2018 January 01 $ 90 000 Branch Stock on 2018 January 01 36.000 Sales: cash Sales: credit 40 000 920 000 Goods from Head Office (invoice price) 840 000 Cash received from debtors 576 000 Discount Allowed to debtors Bad debts Branch expenses paid by Head Office Branch Stock on 2018 December 31 14 000 3.000 50 000 160 000 A. Required: Prepare the following accounts: i. Branch Stock (5 marks) ii. Goods Sent to Branch (2 marks) iii. Branch Adjustment (3 marks) iv. Branch Debtors (5 marks) B. Branch Profit and Loss Account in the books of the Head Office. (5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

17th Edition

032459237X, 978-0324592375

More Books

Students also viewed these Accounting questions