c37 Sale of Goods Above / Below Invoice Price Sometimes goods may be sold by the branch below or above the invoice price as a matter of policy, for example, cash sales at invoice price but credit sales at 10% above invoice price. In such a situation, the Branch Stock Account does not balance. For adjusting excess/short amount realised over the invoice price, the following entries are passed: (i) When goods are sold above invoice price Branch Stock Account Dr. [Difference between actual selling price To Branch Adjustment Account and invoice price] (ii) When goods are sold below invoice price Branch Adjustment Account Dr. [Difference between invoice price and To Branch Stock Account actual selling price] Illustration 31 B. Ltd., Bombay has a branch in Calcutta. Goods are sent to Branch at cost plus 50% (all figures in 3): Opening stock at branch at invoice price 6,00,000 Debtors paid during the year 11,00,000 Opening debtors at branch 2.00,000 Stock shortage detected at the end of the year, at Goods received by branch during the year 18,00,000 invoice price Goods in transit to branch (opening) at invoice price 30,000 Goods returned by branch during the year (invoice price) 90,000 Cash sales during the year (* 30.000 below invoice price) 6,30,000 Bad debts written off 20.000 Credit sales during the year (275,000 above invoice price) 12,00,000 Branch expenses 40,000 From the above information, you are required to prepare: Branch Stock Account; Branch Adjustment Account and Branch Profit and Loss Account for the year ended 31st December, 2017. (You may assume that there is stock in transit at the year-end). 60,000