Branch 3

F.Y.B.Com .B. Com

THEORY THEO RY

F.Y.B.Com .B .Com

1. You are required required to to prepare prepare Trading Trading and Profit Profit And Loss account account and consolidated Balance Sheet of Fair Play Ltd. In Mumbai and its Branch at Delhi. Particulars

Manufacturing expenses Salaries Wages Cash Purchases Capital Good received from H.O. Rent General expenses Sales Goods sent to Branch Purchase Returns Opening Stock  Discount received Machinery H.O Machinery Branch Furniture H.O. Furniture Branch Debtors Creditors Head Office Account Branch Account

Debit H. O. Rs.

Branch Rs.

30,000 30,000 1,00,000 10,000 1,50,000

10,000 10,000 40,000 2,000 80,000

8,000 20,000

15,000 4,000 5,000

Credit H.O. Rs

Branch Rs.

20,000

50,000

30,000

4,50,00 0 15,000 5,000

1,50,000 1,000 1,000

1,50,000 50,000 7,000 3,000 40,000

2,000

15,000 30,000

5,000 54,000

54,000

7,02,000

2,11,000

7,02,00 0

2,11,000

Closing stock at head office was Rs. 40,000/- and at Branch Rs. 30,000/-. Depreciation is to be provided on Machinery at 20 % and furniture at 15%. Rent outstanding at Branch Rs. 500/-

1

ACCOUNTS (F .Y. .Y. B. Com) Branch Account

OMTEX - CLASSES “The home of text”

F.Y.B.Com .B. Com

2.

THEORY THEO RY

F.Y.B.Com .B .Com

X Ltd. whom H.O. in the Calcutta has a Branch at Madras. Which obtain supply the partly from the head office at cost and partly from the other local supplier. The Branch keep separate set of books. On 31/12/02 the following balance were w ere extracted. extracted. Particulars

Head office Calcutta Dr.

Share capital Fixed assets Profit and Loss A/c Opening Stock  Dr’s And Cr’s Bank A/c Purchase and Sales Sundry expenses Goods from H.O. to Branch Current A/c

Cr.

Branch A/c Madras Dr.

1,00.000 88,000

30,000 15,000

15,000 18,000 17,000 3,00,000 12,000

6,000 3,20,000 35,000

7,000 5,000 4,000 20,000 9,000 30,000

26,000 4,76,000

3,000 82,000

20,000 4,76,000

10,5000

2

ACCOUNTS (F .Y. .Y. B. Com) Branch Account

Cr.

OMTEX - CLASSES “The home of text”

105000