DEPENDENT BRANCH ACCOUNTS 2015 - Nov Question : 2 Raju Industries, Kolkata has a branch in Delhi to which office goods are invoiced at cost plus 25%. The branch sells both for cash and on credit. Branch expenses are paid direct from head office, and branch has to remit all cash received to the Head office Bank Account. From the following details, relating to calendar year 2014, prepare the accounts in the Head Office Ledger and ascertain the Branch Profit. Branch does not maintain any books of account, but sends weekly returns to the Head Office. Amount in Particulars 6,00,000 Goods received from Head Office at Invoice Price 12,000 Returns to Head Office at Invoice Price 60,000 Stock at Delhi as on 1st Jan., 2014 1,80,000 Sales during the year - cash 3,80,000 - Credit 72,000 Sundry Debtors at Delhi as on 1st Jan., 2014 8,000 Discount allowed to debtors 6,000 Bad Debts in the year 6,000 Sales returns at Delhi Branch 16,000 Rent, Rates, Taxes at Branch 62,000 Salaries, Wages, Bonus at Branch 6,000 Office Expenses DEPENDENT BRANCH ACCOUNTS 2015 - Nov Question : 2 Raju Industries, Kolkata has a branch in Delhi to which office goods are invoiced at cost plus 25%. The branch sells both for cash and on credit. Branch expenses are paid direct from head office, and branch has to remit all cash received to the Head office Bank Account. From the following details, relating to calendar year 2014, prepare the accounts in the Head Office Ledger and ascertain the Branch Profit. Branch does not maintain any books of account, but sends weekly returns to the Head Office. Amount in Particulars 6,00,000 Goods received from Head Office at Invoice Price 12,000 Returns to Head Office at Invoice Price 60,000 Stock at Delhi as on 1st Jan., 2014 1,80,000 Sales during the year - cash 3,80,000 - Credit 72,000 Sundry Debtors at Delhi as on 1st Jan., 2014 8,000 Discount allowed to debtors 6,000 Bad Debts in the year 6,000 Sales returns at Delhi Branch 16,000 Rent, Rates, Taxes at Branch 62,000 Salaries, Wages, Bonus at Branch 6,000 Office Expenses