UNIT 4 BRANCH ACCOUNT – COMPILATION OF PROBLEMS

Problem 2:

Problem 3:
Gupta Traders of Patna have their branch at Mumbai. Prepare the necessary account in
the books of H.O. from the following transactions with the branch
Particulars AMount
Opening Balance:
Petty Cash at Branch 1,250
Stock at Brach 77,000
Debtors at Branch 41,250
Goods sent to Branch 3,78,000
Amount remitted to the Branch
-Petty Cash Expenses 7,500
-For Salary 18,500
For Rent 6,000
Closing Balance :
Petty cash at Brach 1,880
Debtors at Branch 1,26,150
Stock at Branch 57,880
Discount allowed to Customer 1,060
Amount remitted by the branch:
Cash Sales 26,250
Collection from Debtors 4,10,350
Mr. Sharma to whom goods were sold by 9,000
branch directly remitted the amount to
H.O

Problem 4:
Following information is given to you from the books of Shivam Law Agency for its
branch at Virar for the financial year 2013-14. Prepare Virar branch A/c in the books of
Shivam Law Agency
Particulars Amount
Balance as on 1-4-2013
Branch Debtors 1,200
Stock 600
Cash 100
Balance as on 31-3-2014
Branch Debtors ?
Cash 600
Stock 1,000
Transactions During the year 2013-14:
Goods sent by H.O 7,800
Cash sent by H.O. for petty Cash 2,000
Goods lost at branch 750
Credit Sales 3,600
Insurance claim received by branch 600
Cash received from debtors 2,400
Discount allowed 480
Bad Debts 520
Goods returned by debtors 100
Branch exp paid by H.O - Salary 320
-Advertisement 780
Amount remitted by branch H.O 8,460

Problem No 5:
X Ltd. has a branch at Nasik to which goods are invoiced at cost plus 25%. The following
information is supplied to you for 2013
Particulars Amount
Stock on 1-1-2013 (Invoice Price) 30,000
Debtors 1-12013 20,000
Petty Cash on 1-1-2013 160
Goods sent to branch (Invoice Price) 1,00,000
Sales - Cash 52,000
-Credit 72,000
Cash received from debtors 68,400
Discount allowed to Debtors 1,600
Cash remitted to Branch for Expenses 16,000
Petty Cash at Branch on 31-12-2013 180
Stock on 31-12-2013( Invoice Price) 24,000
Liability for Expenses on 31-12-2013 500