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Head Office, ; Branch, rr. Balance | Cr, Balance | Dr. Balance | Cr. Balance, 5 z z z, 30,000 at =, = 8,000 4,000 as ae, — 1,900 a, 10,000 1,500 2,050, a 1,000 oe, 1,40,000 6,750 20,500, an 2,250 =, 12,000 11,500 i., a = 10,350, a bs, cut 1,96,000_|_1,96,000 32,900 32,900, , , , , , , , , Solution :, , , , The difference in Current Account, 2015 is H.O. is < 10,000 and Branch = 2, and Final Accounts in Head Office Books., , , , Trading and Profit & Loss Account, Sor the year ended 31st December, 2015, , is due to goods and cash in transit. Closing Stock on Dec. 31,, 00. Depreciate fixed assets by 10%. Prepare Branch Account, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , oe a Particulars H.O. | Branch, z 6, 14,000 1,900] By Sales 1,40,000| 20,500, 1,20,000 6,750 By Goods Sent to Branch 12,000 _—, ied 11,500} By Closing Stock 10,000) 2,100, 28,000| = 2,450, ae 1,62,000) 22,600 1,62,000| 22,600, To Sundry Expenses 15,000] 2,250|By Gross Profit b/d 28,000| 2,450, To Depreciation on Fixed By Net Loss c/d — 600, ) Deprecia a, eS 1,600 80, To Net Profit c/d 11,400; — | | aeaal, , 28,000 3,050 [28,000] 3,050, Balance Sheet as at Dec. 31, 2015, | z, ions Ags a, : : ixed Assets :, Share Capital z Su a ann 16,000 |, P&L. ae He Branch 8,000 |, Add : H.O. Profit 1140 24,000 | i, ee ho 14,800] Less : Depreciation » 2,400 | 21,6, OSS: Branch Loss wae Debtors : 7,000, Sundry Creditors : i HO. es | maso0, LO: 10,0 12,050 Branch _ 1,509 :, ‘Branch 2,050 Cash in hand : ‘, i H.0. 200, 4,000, , Branch

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sh in Transit, Calculation of Cash in Trai, , , , Working Note :, , Balance of H,0. Current, Less: Goods in Transit, , , , 10,35), , ! ‘ 1034, , Less: Balance of Branch Current a/c 3, Cash in Transit, , « called Goods in Transit Le. (12,000-11,500) = soy", fferet f Goods sent to Branch is called Goods in Transit i.e. (12,, The difference of sent f ch g :, , , , , , , , , , , , , , , , , , , _ Branch a/c 3, Bae os eo |. - Particulars z, arti 3 ; j _ aa, ae py. : 600, By Branch P. & L. a/c, = Can me 50|By Fixed Assets oe, To Deprecation an ; 800)By Debtors ee ‘, : | By Cash in hand 1,000, By Cash in transit 150, By Goods in transit « 500, By Closing Stock 2,100, 820 ™ 13,850, Problem 24 : The Head Office of a, , business and its branch keep their own b each, Prepares its own Profit and Loss Account. The following are balanc ae, , ©S appearing as at 31 gt March, 2015, ‘Name of Ledger Accounts, , , , , , , , , , , , , , , , , , , Head Office, , Capital, , Fixed Assets, , Stock 34,200, , Debtors and Creditors 7,820 3,960 Te, Cash | 10,740 — ] ‘420, Profit & Loss Account | —_ | 14,660 :, Branch Account | 29,860 2 a, Head Office Account | _ _ se, , Total, , , , 118,620 | ier | “aw a

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ite, , the Balance Sheet, shorn wi eo" 9TH Merch, 2018 ad ie joa ees necetry, , in 34st March, the branch had, sent, ‘or credited to the [aa, , is Walued at © 440 had been forwarded, March 4 by the Head Office to the branch and invoiced on, but were Rot received by the branch not dealt with in their till next month, , was agreed ranch, endered by ewon should be charged with & 300 for administration services, , ck stolen in transit from the Head Office, to the branch and charged to the braneh by the, Office, Z 400 the branch manager declined to admit any liabitity., , ciation of certain branch assets of wh i, tovided for Z 250, ich accounts are maintained by the Head Office,, , , , , , , , , , , , , , , , , , , , , , , , Journal Entries, pro Particulars LF. L Amount in &, ~- _} Petit | Credit, zt z, ransit a/c Dr. 1,000:, To Branch a/c 1,000, eque sent by Branch on 31st March but not received, xt month) |, Dr. ado |, | 440, on 29.3,2015 but not, ), Dr. 300, 300., administrative services), : be 3, 400, from 1.0. now credited as, — ee 250, Dr 230, assets provided)» _, ini ee Dr, "2,510, ; 2,510, |

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2.30__ i Branch Accoun,, , ar aut Balance Sheet as at 31st March, 2015, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Liabilities zg Assets z, z Fixed Assets : z zg i, Capital 1,00,000 H.O. 36,000, Add : Profit : ; Branch 16,000, H.O, ‘ 14,560 Less ; Depreciation 250 15,750 | 51,75, Branch 2,510 1,17,070| Stock :, Creditors : HO. 34,200, HO. 3,960 Branch 10,740 |, Branch 1,920 | 5,880] — In-transit 440| 45,329, : Debtors : |, H.O. 7,820, Branch 4,840| 12,669, Cash :, H.O. 10,740, Branch 1,420, i In-transit 1,000 | 13,160, tz 950. {1,22,950, Working Notes : 1. Branch P. & L. a/c (for the year ending 31st March, 2015), Particulars z Particulars lees, To H.O. Expenses a/c 300 |By Profit (as given) 3,060 ', To Depreciation a/c 250, To Profit transferred to Capital a/c | 2,510 A ahs, 3,060 | 3,060, 2. H.O. P. & L. a/e (for the year ending 31st March, 2015), Particulars Si Particulars AG, To Branch a/c 400] By Profit (as given) 14,660, To Profit transferred to Capital a/c 14,560} By Branch P & L a/c |__300, i 14,960 14,960, , , , , , Problem 25 : A Kolkata firm whose accounting year ends on 31st March has two branches—on, , ; and the other at Nagpur. The branches keep a complete set of books. On 31st March, 2 iS, pe oer Nagpur branches accounts in Kolkata books showed debit balance of & 15,225 and ¢ 22,°, , ively before taking the following information into account :, ae The Agra branch collected ¥ 1,250 from an Agra customers of the Head Office., , (ii) Goods valued at Z 1,000 were transferred from Agra to Nagpur under instructions from t, , Head Office. (iii) The Nagpur branch paid € 2,500 for goods purchased by the Head Office in Nagpu Fe, , iy) % 2,500 remitted by the Agra branch to Kolkata on the 29th March, 2015 was received on 5, re April, 2015 by the Head Office., (v) The Nagpur branch received on behalf, , Cumpary:, yy. Farr shee ¥eae 7014-15, the Agra Bran, ad net profit of & 2,700., , he, , jagpul, , of the Head Office € 750 as dividend from @ N, , -anch &, ch showed a net loss of % 625 and the Nagpur bran”?

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to record these m, the Head Office ba, , oks of the Head Office : Journal Entri, ; Particulars ., , rs'in the Head Offic, , , , books and thereafter pre, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , LE. [Amount in, D Dr. @), Cr. @), ne 1,250, ch from one Allahabad 1,250, ‘o Agra Branch a/c Dr. ', is transferred from Agra by ? 1,000, ead office itsthactio) ranch to Nagpur branch 4, Dr. 2,500, 2,500, }, ° Agra Branch a/c Dr. 2,500, remitted by Agra branch on 29th March, 2015 a, by the head office on 3rd April, 2015), $, Dr. 750, i 750, lend received by Nagpur branch on behalf of H.0.), Dr. 625, ‘o Agra Branch a/c 625, ss incurred by the branch), spur Branch a/c Dr. 2,700, To Profit & Loss a/c 2,700, ofit earned by Nagpur Branch.), ; Agra Branch Account Cr:, Particulars ae z pate Particulars z, ., 31|By Nagpur Branch 1,000, ep wos mae +BY Cash in Transit a/c 2,500, Debtors of H.O- a 4 Mar., 31|By Profit & Loss a/c 625, Mar., 31| By Balance c/d 12,350, Taal ; 16,475, , , , , , , , , , , , Mar., 31| By, Mar., 3! | By, , , , , , , , Purchases a/c, Balance c/d