To Balance bld To Sales By Cash/Bank 1,35,000 By Balance c/d 1,35,000 1,06,000 29,000 1,35,000 Goods Sent to Branch Account 52 To Branch A/C (Returns) 4,200 By Branch A/C 1,65,000 To Branch A/c (Loading) 14,618 To Purchases Alc 1.46.182 1,65,000 1,65,000 Working Notes: 1. Loading on Goods sent to Branch = 1/11 of (* 1,65,000 - 34,200) = 314,618 2. Stock Reserve = 1/11 of 53,400 = 4,855 Illustration 10 Hindustan Industries Mumbai has a branch in Cochin 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 the Branch has to remit all cash received into the Head Office Bank Account From the following details, relating to calendar year 2012, 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: Goods received from Head Office at invoice price Returns to Head Office at invoice price Stock at Cochin as on 1st Jan., 2012 Sales in the year. Cash Credit Sundry Debtors at Cochin as on 1st Jan. 2012 Cash received from Debtors Discount allowed to Debtors Bad debts in the year Sales returns at Cochin Branch 6,00.000 12,000 60,000 2,00,000 3,60,000 72,000 3,20,000 6,000 4.000 8.000 Rent, Rates, Taxes at Branch Salaries, Wages, Bonus at Branch Office Expenses Stock at Branch on 31st Dec. 2012 at invoice price 18,000 60,000 6,000 1,20,000