Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

JK Cement Is a manufacturing company operating since 1992.It has head office in Delhi and have branch in Mumbai. It sends goods to branch at

JK Cement Is a manufacturing company operating since 1992.It has head office in Delhi and have branch in Mumbai. It sends goods to branch at 40% margin on cost price.

During FY 2019-20 Head office sent goods worth Rs 5,00,000/- to its branch at invoice price. At the time of receipt of goods from head office it had balance of Rs 1,00,000/- in its stock. Monthly expenses paid by branch are as follows :

Rent Rs 50,000/-, Salary Rs 1,00,000/-

Branch returned 15% of goods received from head office at invoice price. Branch sales stood for the year as follows :

15% Cash Sales

85% Credit Sales.

Debtors were offered 10% discount. Stock worth Rs 25,000/- was damaged by fire at branch level.

Branch do not any books of accounts at its end.

Based on above questions answer following questions

1. What will be the balance in Stock reserve account in Head office books?

2. Calculate the balance of Branch stock at the end of the year in head office books.

3. Prepare Branch debtors ledger account in head office books.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David Marshall, Wayne McManus, Daniel Viele

12th edition

007802529X, 1259969525, 978-1260565492

More Books

Students also viewed these Accounting questions

Question

What is Accounting?

Answered: 1 week ago

Question

Define organisation chart

Answered: 1 week ago

Question

What are the advantages of planning ?

Answered: 1 week ago

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago