Question 2 John and Brooks are stockists of fashion wear. They have been in this business for many years operating from Gaborone. On the basis of their performance they decided to expand further a- field and therefore opened two more shops in Jwaneng and Ghantsi during their financial year ended June 30, 2021. All stock for resale was to be obtained from Gaborone and taken into the branch books at cost plus 33 73% mark-up. All sales were to be for cash, no credit being allowed and all takings after deducting any small petty cash payments were to be banked each evening. All other expenses of the branch were paid by Gaborone. Each branch was to have a cash float of P168. Due to a misunderstanding, proper branch accounts were not kept in the head office, however, from the head office books you manage to obtain the following: Fixtures Cash-float at branches Branch wages and overheads Goods to branch at cost Goods returned by branches at cost Cash received from branches Jwaneng P 5 880 168 10 416 45 360 504 52 836 Ghantsi P 6930 168 11 508 60 480 252 72 240 From branch books you obtained the following: Jwaneng P 54 348 168 Ghantsi P 72 811 168 Sales Float at 30 June 2021 Goods purchased and paid for: Locally at cost Sundry Expenses Banked for headquarters account Goods to headquarters at selling price Goods to other branch at selling price Stock at 30 June 2021 at selling price Damaged stock scrapped at selling price 840 672 52 836 672 1 176 5 544 34 781 72 240 336 336 7963 25 You further ascertain that: a) the goods purchased locally were sold at a mark-up of 50% on cost in the Jwaneng branch. Its closing stock included P101 in respect of these goods, all other sales being at a mark-up of 3313% on cost b) during sales' week all prices were reduced by 10% and takings during the week were Jwaneng P1 512, Ghantsi P1 814. 3 c) each branch is to be charged P840 in respect of services by head office not directly chargeable. d) each branch is to bear a depreciation charge of 10% of the cost of its fixtures and fittings e) there was no cash or stock in transit at June 2021. Required: Prepare the following accounts (in columnar form) as they would appear in head office b the year ended June 30, 2021. WE a) Branch stock accounts. b) Goods sent to branch accounts. c) Branch adjustments accounts. Question 2 John and Brooks are stockists of fashion wear. They have been in this business for many years operating from Gaborone. On the basis of their performance they decided to expand further a- field and therefore opened two more shops in Jwaneng and Ghantsi during their financial year ended June 30, 2021. All stock for resale was to be obtained from Gaborone and taken into the branch books at cost plus 33 73% mark-up. All sales were to be for cash, no credit being allowed and all takings after deducting any small petty cash payments were to be banked each evening. All other expenses of the branch were paid by Gaborone. Each branch was to have a cash float of P168. Due to a misunderstanding, proper branch accounts were not kept in the head office, however, from the head office books you manage to obtain the following: Fixtures Cash-float at branches Branch wages and overheads Goods to branch at cost Goods returned by branches at cost Cash received from branches Jwaneng P 5 880 168 10 416 45 360 504 52 836 Ghantsi P 6930 168 11 508 60 480 252 72 240 From branch books you obtained the following: Jwaneng P 54 348 168 Ghantsi P 72 811 168 Sales Float at 30 June 2021 Goods purchased and paid for: Locally at cost Sundry Expenses Banked for headquarters account Goods to headquarters at selling price Goods to other branch at selling price Stock at 30 June 2021 at selling price Damaged stock scrapped at selling price 840 672 52 836 672 1 176 5 544 34 781 72 240 336 336 7963 25 You further ascertain that: a) the goods purchased locally were sold at a mark-up of 50% on cost in the Jwaneng branch. Its closing stock included P101 in respect of these goods, all other sales being at a mark-up of 3313% on cost b) during sales' week all prices were reduced by 10% and takings during the week were Jwaneng P1 512, Ghantsi P1 814. 3 c) each branch is to be charged P840 in respect of services by head office not directly chargeable. d) each branch is to bear a depreciation charge of 10% of the cost of its fixtures and fittings e) there was no cash or stock in transit at June 2021. Required: Prepare the following accounts (in columnar form) as they would appear in head office b the year ended June 30, 2021. WE a) Branch stock accounts. b) Goods sent to branch accounts. c) Branch adjustments accounts