Cr. Dr. Date 31.3.2018 | | 56,620 Branch Profit and Loss Account Particulars Date Particulars To Goods Pilfered A/c (Cost) 2,400 31.3.2018 By Branch Adjustment A/C To Branch Expenses Alc: Bad Debts 400 Insurance Charges 200 Petty Expenses (Note 8) 31,900 To Net Profit (Transferred to General P&L Ac) 21.720 56,620 56,620 Cr. Dr. Date 1.4.2017 31.3.2018 Particulars To Branch Adjustment Alc To Balance cld Stock Reserve Account Date Particulars 8,000 1.4.2017 By Balance b/d (Note 6) 28,230 31.3.2018 By Branch Adjustment A/c (Note 7) 36,230 8.000 28,230 36.230 Dr. Branch Debtors Account Cr. Date Particulars Date Particulars 1.4.2017 To Balance b/d 12,000 31.3.2018 By Branch Expenses A/c (Bad Debts) 400 31.3.2018 To Branch Stock Alc 1,80,000 By Branch Stock Alc (Returns) 500 By Bank A/c (Cash Collected) 1,80,100 31.3.2018 By Balance cld 11,000 1,92,000 1,92,000 Working Notes: (1) For calculating Branch Closing Stock (when it is not given), normal loss is credited to Branch Stock Account at invoice price. Normal Loss Account is closed by debiting to Branch Adjustment Account (2) Loading on net goods sent: Goods sent to branch 4,20,000 less goods returned to head office 15,000. Therefore, net goods sent - 4,05,000. Loading is 1/5 of 4,05,000 -81,000. (3) Loading on goods transferred to Gwalior Branch: 1/5 of 12,000 - 2,400 (4) Loading on goods pilfered: 1/5 of 3,000 - 600. Cost of goods pilfered 2,400 R 3,000 - 600) will be debited to Branch Profil and Loss Account (5) Loading on goods lost by fire: 1/5 of 4,000 - 800. Cost of goods lost by fire 3,200 4,000 - 800) will be debited to General Profil and Loss Account (6) Loading on opening stock: 1/5 of 40,000 - 8,000, (7) Loading on closing stock: 1/5 of 1,41,150 - 28,230. (8) Petty Expenses - Opening petty cash 150 plus cash sent by head office for petty cash ? 32,000 less closing petty cash 250 - 31.900. Sometimes, Branch Stock Account may be maintained under two columns on both the sides - Invoice Price Column and Cost Price Column. The 'Invoice Price Column' being a mere memorandum column, all double entries are with the 'Cost Price Column Gross Profit or Loss is disclosed by the 'Cost Price Column'. The sales and sales returns are same for both the columns. Illustration 30 Atlantic Paper Products sends goods to their Bhopal branch at cost plus 25%. You are given the following particulars: Opening stock at branch at its cost 5,000 Sales 25,500 Goods sent to branch at invoice price 20,000 Expenses 8,000 Loss in transit at invoice price 2,500 Closing stock at branch at cost to branch 6.000 Theft at invoice price 1,000 Claim recd from the insurance company for loss in transit 2.000 Loss in weight (normal) at invoice price 500 You are required to prepare in the head office books: (a) Branch Stock Account: (b) Branch Adjustment Account; (c) Branch Profit and Loss Account; (d) Surplus in Stock Account; (e) Loss-in-transit Account; and (t) Loss by Theft Account. C36