Squid Ltd, whose head office is in Aberdeen, operates a branch in Dundee. All goods are purchased by head office and invoiced to and sold by the branch at cost plus 50 percent. Other than a sales ledger kept in Dundee, all transactions are recorded in the books in Aberdeen. The following particulars are given of the transactions at the branch during the year ended 30 June 20X6.

 

You are required to write up the branch stock account and branch total debtors account for the year ended 30 June 20X6, as they would appear in the head office books, showing clearly any abnormal wastage.

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Stock on hand, 1 July 20X5, at invoice price Debtors on 1 July 20X5 Stock on hand, 30 June 20X6, at invoice price Goods sent from Aberdeen during the year at invoice price Credit sales Cash sales Returns to head office at invoice price Invoice value of goods stolen Bad debts written off Cash from debtors Normal loss at invoice price due to wastage Cash discount allowed to debtors £ 26,400 23,676 23,688 148,800 126,000 14,400 6,000 3,600 888 134,400 600 2,568 Stock on hand, 1 July 20X5, at invoice price Debtors on 1 July 20X5 Stock on hand, 30 June 20X6, at invoice price Goods sent from Aberdeen during the year at invoice price Credit sales Cash sales Returns to head office at invoice price Invoice value of goods stolen Bad debts written off Cash from debtors Normal loss at invoice price due to wastage Cash discount allowed to debtors £ 26,400 23,676 23,688 148,800 126,000 14,400 6,000 3,600 888 134,400 600 2,568

Answer rating: 100% (QA)

SQUID LTD BRANCH STOCK ACCOUNT YEAR ENDED 30 JUNE 20X6 Stock on h... View the full answer