The P.T. Co. Ltd. invoices goods to its Kanpur branch at cost plus 25%. Both cash and credit sales are effected by the branch at these prices. Branch expenses are paid direct from the Head Office, all cash received by the branch being remitted to Head Office.

The following are the details of the transactions for the year ended 31.12.2017:

Prepare :

(i) Branch Stock

(ii) Branch Debtors

(iii) Branch Adjustment Account

(iv) Branch Profit and Loss Accounts in the books of the Head Office.

Transcribed Image Text:

Particulars Goods received from H.O. at invoice price Returns to H.O. at invoice price Stock at branch as on 1.1.2017 Credit sales Cash sales Debtors as on 1.1.2017 Cash received from Debtors ₹ 2,00,000 5,000 50,000 1,10,000 1,08,000 38,000 1,16,000 Particulars Discounts allowed to customers Bad debts written-off Returns from customers Rent, rates and taxes Salaries and wages Sundry expenses ₹ 1,600 3,000 2,000 2,400 8,000 1,200