Branch 3

OMTEX – CLASSES “T HE HO ME OF T EX T” THEORY

F.Y.B.Com

F.Y.B.Com

1. You are required to prepare Trading and Profit And Loss 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 10,000 30,000 10,000 1,00,000 40,000 10,000 2,000 1,50,000 80,000

Credit H.O. Rs Branch Rs.

20,000 8,000 20,000

50,000

15,000 4,000 5,000

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. B. Com) Branch Account

OMTEX - CLASSES “The home of text”

OMTEX – CLASSES “T HE HO ME OF T EX T” THEORY

F.Y.B.Com

F.Y.B.Com

2. 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 extracted. Particulars

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

Head office Calcutta Dr. Cr. 1,00.000 88,000 15,000 15,000 18,000 6,000 17,000 3,00,000 3,20,000 12,000 35,000 26,000

Branch A/c Madras Dr. Cr.

4,76,000

10,5000

4,76,000

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

82,000 20,000

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

3,000

OMTEX - CLASSES “The home of text”

105000