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OMTEX – CLASSES “T HE HO ME OF T EX T” BRANCH A/C

F.Y.B.Com

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Journal entries in the books of

F.Y.B.Com

Head office

Goods sent to Branch by H.O Branch A/c ……… Dr. To Goods sent to Branch A/c Cash sent by H.O or Branch expenses paid by H.O Branch A/c …… Dr. To cash A/c Recording Branch assets at the beginning Branch A/c …… Dr To Branch Assets A/c Recording Branch liabilities at the beginning. Branch liabilities A/c ……Dr. To Branch A/c Transfer Branch profit Branch A/c …… Dr To General Profit / Loss A/c

Goods Return by Branch to H.O Goods sent by branch A/c ……Dr To Branch A/c Cash received from Branch Cash A/c …… Dr To Branch A/c Recording Branch assets at the ending Branch Assets A/c …… Dr To branch A/c Recording Branch liabilities at the ending. Branch A/c …… Dr. To Branch liabilities A/c Transfer Branch Loss General profit/ loss A/c …… Dr To Branch A/c

Cash sent by Branch but not received by H.O Cash in transits A/c …… Dr. To Branch A/c

Goods sent by Branch but not received by H.O Goods in transits A/c …… Dr. To Branch A/c

The following transactions are not recorded in the Branch A/c However they may be recorded in the books of Branch to calculate the missing information. 1. Cash or credit sales by Branch 2. Cash or credit purchase by Branch 3. Return of goods by Debtors to branch 4. Return of goods by Branch to suppliers (Cr’s) 5. Receipts of cash from customer (Dr’s) 6. Payment to suppliers (Cr’s) or for expenses by Branch 7. Discount allowed to customer or received from suppliers. 8. Purchase or sale of assets 9. Loss of cash or goods at branch

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OMTEX – CLASSES “T HE HO ME OF T EX T” BRANCH A/C

F.Y.B.Com

F.Y.B.Com

1. Hari is having Head office at Mumbai and Branch office at nashik. Prepare the branch A/c in the books of Head office .From the following transactions with the branch. Particulars Amount Opening balance at Branch: Petty cash 1,000 Stock 39,500 Debtors 21,000 Goods supply to branch during the years Cash remitted by the branch : Cash sales Realization from Debtors Cash remitted to the branch: Petty cash expenses Salaries Rent and taxes Closing balance at bank Petty cash Debtors stock

3,10,000 1,13,200 2,30,300 4,000 12,000 3,500 950 53,000 26,500

In the books of hair at Mumbai, nashik branch A/c for the year ended

2. Babu Bhai of Mumbai opened Branch at Nasik on 01/01/2002. During the year ended 31/12/2002 the following transaction have taken place Goods sent to Nasik 6000 Cash sent to Nasik 5000 Goods return from Nasik 6000 Cash received from Nasik 58000 Rent for Branch Paid by H.O 3,000 Expenses paid by Branch Salaries 6000 Conveyance 500 Postage 500 Carriage 400 Discount allowed to customer Rs. 800. Sales on credit amounted to Rs. 8000 Cash sales amounted Rs. 8000 On 31/12/2002 Stock worth Rs. 6000/- was at Branch, Rs. 5000 was due from Debtors. Cash on hand was Rs. 1000 Show Branch A/c in the books of Babu Bhai. 3. From the following detail prepare Mumbai Branch A/c for the 6 month ended 31/12/2002 after Depreciation branch furniture @ 20% p.a. Opening Branch Assets:Branch stock 20000 Branch Petty cash 6000 Branch Furniture 26000 Debtors 30000

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OMTEX – CLASSES “T HE HO ME OF T EX T” BRANCH A/C

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Opening Branch Liabilities Branch outstanding expenses Goods sent to branch Petty cash sent to branch Branch expenses paid by the H.O. Remittance Received from the Branch Closing Branch Asset Branch stock Branch Petty cash Branch Debtors Closing Branch Liabilities Branch outstanding salaries

F.Y.B.Com

1000 1, 80,000 16,000 34000 2, 32,800 24,000 4,000 34,000 1,400

4. From the following detail of Gupta trader of Partner have their Branch at Mumbai. Prepare the necessary A/c In the books of H.O from the following transaction with the Branch. Opening Balance Petty cash at Branch 1250 Stock 77,000 Debtors 41250 Goods sent to Branch 3, 78,000 Amount Remitted to Branch Petty Expenses Salaries Rent and Taxes

7,500 18,500 6,000

Closing Balance Petty cash Debtors Stock Discount allowed to customer

1880 126150 57880 1060

Amount remitted to Branch Cash sales Realisation from Debtors

26250 4,10,350

Mr. Sharma to whom goods sold by Branch directly, remitted the amount to Head office 9000. .

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