Branch 3

Exercise 3 Dinaka Ltd has a Head office in Gaborone and a branch in Palapye. All transactions for the branch are recorded in the books in Gaborone. Goods are transferred to the branch at 25% above cost. The following are transactions at the branch during the year ended 31December 2006: Pula Stock on hand 1 January 2006 (selling price) 4 400 Debtors on 1 January 2006 3946 Stock on hand 31 December 2006(selling price) 3948 Goods sent to Palapye during the year at selling price 24 800 Credit sales 21 000 Cash sales 2 400 Returns to head office at selling price 1 000 Goods stolen at selling price 600 Bad debts written off 148 Cash from debtors 22 400 Normal loss at selling price due to wastage 100 Cash discount allowed to debtors 428 Prepare the following as they would appear in the H/O books. a) Branch stock account, b) Branch debtors account c) Goods sent to branch account, and d) Branch stock adjustment account