B i 3 Branch Debtors Account Fo salance ba 732750 |ByBad debe wetten off | 750) To Branch Stock Ale Sales) | 1.65000 | ByBranch Cash (oa. | 1.71000] ia) SyBalance cd 26000! L 197.750 197.750 To Balance ba 5000 |By fark Remittance to HO. | 222500] To Branch Stock 3.000] By Branch Expenses ‘10.00 FToBtarch Deotors | 17000) met by ranch (al Bo) By salance c/s 2500] 730 235000] Branch Adjustment Account By Stock Resene opening | 5.000 (25,000 » 20%) ‘To Branch P AL - Gross| 39,000| By Goods sent to Branch | 20.000 Profit ag) Ne To Stock Revere (on By Branch Stock Ne 2000) losing stock 46.000 « | 4000 6) “apo 7000) ‘Branch Expenses Fro cask HO) 2.000 To Branch Cash 10.000 | 8y Branch PaL Ne 22000 22.000) 722.000) Debtors Method Unde this method, the principal accounts tat willbe maintained are: Branch Profit and Loss Account To Branch Expenses 72.000 | By Gross Prot (rom | 38000 Branch Adjustment Ac) HTosranch Debtors ead] 750 debts) Toner Prost 16250 33000 3an00 ‘Goods Sent to Branch Recount ToBranch Adjustment Ac | 40.000] By Branch to Stock Ac | 2.40000 ToPurchase Afe-Teanster | 200000 240.000] ZA00, ‘he Branch Account ‘he Good Sent to ranch Account: and “ho Stack Reserve Account ses ia these accounts wl be mad in the following maneer: (a) | ooas sert to Branch at | Branch aye ‘Goods Sent to ranch Sees ee me‘Miustraion 3 (a) Horeson of Chernoi has bronch ot New Dei to which goods are sent @ 20% ‘hove cot. The branch makes both cash ond cred eoles BFanch expences ore met ‘arty from H.0.and partly bythe branch The statement of expenses inured bythe branch every month centt ead office fr recoding Flowing further ets ve given fr the yor ede 31 [Cont of god ert Branch ot cost 72.000 Goods received by Sronch il 31-12-2011 ot invoice pace 220,000) Creda Stes forthe year @ ivice price 165.00 Coun Soles forthe yor @ inecice price 53000 Coan Remined ro head oie 222500) spenses paid by 10. 12000) Bod Debes writen off, 730 Botences son stock Debrrs [Cosh in Hand Sow necessary ledger accounts in the Books ofthe he ofc ond determine the Prot o asf te Branch forthe year ended 3T3t December, 201 Solution [Books of Harrison Branch Stock Account [To Balarce b/d Op Stock | 30,00 | By Branch Debtors (Stes) | 1.65000 To Goods Sent to Branch | 240,000 8y Branch Cash 8.000 are To Branch Adjustment 7c | 2,000 By Balance cfd (Galancing Figure ~ ‘Goods ia Transit aces of Sale over voice © 249.000-#220000)| 20.000 Pree) ‘Gosing stock at | 28000 ‘ranch 27200 200] To Branch stock Ale sates) | 1.65000 | ByBranch cash (oa. | 1.71000) SyBalance ct 26000! 197780 191750