Cr. Rs 30,000 33,000 63,000 In the Books of Santhosh & Co (Head Office) Trichy Branch Account Dr. Particulars RS Particulars To goods sent to By Remittance: Branch 45,000 Cash sales Collection from Salaries 9,000 debtors Office expenses 7,200 16,200 To Cash 3,600 By Balance dd (remittance to branch) Stock To Profit (transferred to general P&L A/e) 17,700 Debtors Petty cash 16,200 3,000 300 19.500 82.500 82.500 Workings: Branch Debtors Account 440 Dr. Particulars To Credit sales Rs Particulars 36,000 By cash (?) By balance eld Rs. 33,000 3,000 36,000 36,000 2. Notes: 1. Since it is a newly opened branch, there will by no opening balance of assets or liabilities Branch debtors A/c is prepared to know the amount of cash collected from debtors which was missing Illustration 7 From the following particulars relation to Salem branch for the year ending 31.12.2006, prepare the branch A/c in the books of head office. Rs. Stock (1.1.2006) 18,000 Debtors (1.1.2006) 7.200 Petty cash 120 Goods sent to branch during 2006 30.000 Goods returned by branch during 2006 360 Cash sales 18.000 Credit sales 25.200 Sales returns too branch 150 Bad debts 60 Discount allowed to customers 180 Expenses of branch met by H.O 2.100 Table and chair purchased by the branch 600 Cash collected from customers 21.000 Stock (31.12.2006) 7500 Debtors (31.12.2006) Petty cash1 12 20 1