KUKUS Traders have their head office in Sampa and a branch in Japekrom. All purchases are...

 

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KUKUS Traders have their head office in Sampa and a branch in Japekrom. All purchases are made by head office and sent to branch at cost plus 331/3% mark-up. A separate branch account is kept. The branch maintains a sales ledger but all other accounts are kept at the head office. The following information relates to April 2010: April 1, 2010 Branch stock, at invoice price Branch debtors Branch bank balance During April 2010 Goods sent to branch, at invoice price Goods returned by branch, at invoice price Credit sales by branch Cash sales by branch Goods returned to branch by debtors Wages and salaries paid out of branch bank account Branch rent and rates Cash received from branch debtors Cash discount allowed to branch debtors Branch bad debts written off Cash transferred from branch bank account to Head office bank account The following additional information is available: i. ii. iii. GH¢ 13,640 18,220 1,850 Required: a) Draw up the following ledger accounts in the books of head office: i. Branch stock account iv. Branch debtors account b) Branch profit and loss account 20,380 1,400 16,260 1,880 1,540 ii. Goods sent to branch account v. Branch expenses account 780 320 17,410 155 85 Stock taking on April 30, 2010 reveal an apparent shortage of stock of invoice price of GH¢180 15,000 Cash sales include sale of some stock which had to be sold at GHC600 less than the invoice price due to damaged state A part of the head office expenses is charged to branch profit and loss monthly. For April 2010, it amounted to $530. iii. Branch mark-up account vi. Bank accounts KUKUS Traders have their head office in Sampa and a branch in Japekrom. All purchases are made by head office and sent to branch at cost plus 331/3% mark-up. A separate branch account is kept. The branch maintains a sales ledger but all other accounts are kept at the head office. The following information relates to April 2010: April 1, 2010 Branch stock, at invoice price Branch debtors Branch bank balance During April 2010 Goods sent to branch, at invoice price Goods returned by branch, at invoice price Credit sales by branch Cash sales by branch Goods returned to branch by debtors Wages and salaries paid out of branch bank account Branch rent and rates Cash received from branch debtors Cash discount allowed to branch debtors Branch bad debts written off Cash transferred from branch bank account to Head office bank account The following additional information is available: i. ii. iii. GH¢ 13,640 18,220 1,850 Required: a) Draw up the following ledger accounts in the books of head office: i. Branch stock account iv. Branch debtors account b) Branch profit and loss account 20,380 1,400 16,260 1,880 1,540 ii. Goods sent to branch account v. Branch expenses account 780 320 17,410 155 85 Stock taking on April 30, 2010 reveal an apparent shortage of stock of invoice price of GH¢180 15,000 Cash sales include sale of some stock which had to be sold at GHC600 less than the invoice price due to damaged state A part of the head office expenses is charged to branch profit and loss monthly. For April 2010, it amounted to $530. iii. Branch mark-up account vi. Bank accounts

Answer rating: 100% (QA)

a BRANCH STOCK ACCOUNT Debit Credit April 1 13640 April 30 1382... View the full answer