Sunny Traders of Mumbai opened a branch shop on 1.1.2018 in Kolkata. All goods for sale at the shop are purchased by the head office and charged to the branch at retail selling price, which is cost plus 331/3%. The branch backs its takings, without deduction, for the credit of head office. Although it is a cash business, the branch manager is allowed to give credit in a few special cases.

The following information is relevant for the first three months to 31 March :

From the above particulars, prepare:

(i) Branch Stock Account;

(ii) Branch Adjustment Account;

(iii) Branch Profit and Loss Account; and

(iv) Goods Sent to Branch Account.

Transcribed Image Text:

Purchases Sales at head office Goods sent by head office to the branch at selling price Cash sales at branch Credit sales by branch Goods returned to head office at selling price Cash collected from branch debtors Branch expenses Head office expenses Closing stock at head office Opening stock at head office Authorised reduction in branch selling prices Particulars ₹ 27,130 9,100 28,000 18,000 2,000 1,000 1,730 1,000 1,200 2,650 2,900 820