Dec.31 42,000 30,590 as sent to To Bank Alc: Salaries & wages Rent Sundry expenses To General Profit & Loss Alc 8,400 5,250 3,600 2,090 83,340 debtors (Note 2) By Balance cld: Stock Debtors Prepaid Rent (Note 3) 9,600 11,500 1,050 83,340 Tutorial Notes: (1) Under this method, normal loss, credit sales, sales returns, bad debts, discount allowed to debtors, etc., are to be ignored. (2) The amount of cash received from debtors is not given. It has been found out by preparing Memorandum Debtors Account as follows: Dr. Memorandum Branch Debtors Account Cr. Particulars Particulars To Balance bld 10,000 By Bad Debts 600 To Sales (credit) 36,000 By Discount allowed 310 By Returns inward 3,000 By Bank (Balancing figure) 30,590 By Balance ald 11,500 46,000 46,000 (3) Pre-paid Rent = 5,250/15 x 3 = 1,050. c32 Illustration 5 The head office of a company invoices goods to its Shillong Branch at cost, who also purchases goods independently from local parties for which payments are made by the head office. All the cash collected by the Branch is banked on the same day to the credit of the head office and all expenses are directly paid by the head office except for a Petty Cash Account maintained by the branch for which periodical transfers are made from the head office. From the following particulars, show the Branch Account as maintained in the head office books, reflecting the branch profit for the year ending 31.12.2017: Imprest Cash : 1.1.2017 2,000 Returns from Customers 3,000 Imprest Cash : 31.12.2017 1,850 Goods sent to Branch from H.O.: 50,000 Sundry Debtors on 1.1.2017 25,000 Transfer from H.O. for petty cash expenses 2,500 Stock on 1.1.2017 Bad debts 1,000 Transferred from H.O. 20,000 Discount to customers 2,000 Directly purchased by Branch 16,000 Cash received from customers 1,25,000 Shortage of stock 4,000 Branch Expenses 30,000 Cash Sales 45,000 Stock on 31.12.2017: Credit Sales 1,30,000 Transferred from H.O. 15,000 Direct Purchases 45,000 Directly purchased by Branch 12,000