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Reliance Ltd has a head office in Mumbai. Following is the information regarding its Nagpur branch. It supplies goods to its Nagpur Branch at 25% profit on cost price. Accounts are kept at head office from where all expenses (except petty expenses) are paid. Such petty expenses are paid by the branch which is allowed to maintain a petty cash balance of Rs. 2500 on the imprest system.?
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Reliance Ltd has a head office in Mumbai. Following is the information...
Reliance Ltd Nagpur Branch Accounting System

Reliance Ltd, a company with its head office in Mumbai, has a branch in Nagpur. The Nagpur branch is responsible for receiving goods from the head office and selling them to customers in Nagpur. The following information outlines the accounting system used by the Nagpur branch of Reliance Ltd.

Profit Margin

The Nagpur branch buys goods from the head office at a cost price and sells them to customers at a 25% profit margin. This means that the selling price of the goods is 125% of the cost price.

Expenses

All expenses for the Nagpur branch are paid by the head office except for petty expenses. Petty expenses are paid by the branch and are allowed to maintain a petty cash balance of Rs. 2500 on the imprest system. The imprest system is a system where a fixed amount of money is provided to a department or branch to cover small expenses. This amount is replenished when it is used up.

Accounts

All accounts for the Nagpur branch are kept at the head office. This includes the accounts for the sales made by the Nagpur branch. The Nagpur branch is required to send regular reports to the head office regarding its sales and expenses.

Conclusion

The accounting system used by the Nagpur branch of Reliance Ltd ensures that the branch is able to operate efficiently while maintaining accurate records of its sales and expenses. The system also allows the head office to keep track of the performance of its branch and make decisions regarding its operations.
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Reliance Ltd has a head office in Mumbai. Following is the information regarding its Nagpur branch. It supplies goods to its Nagpur Branch at 25% profit on cost price. Accounts are kept at head office from where all expenses (except petty expenses) are paid. Such petty expenses are paid by the branch which is allowed to maintain a petty cash balance of Rs. 2500 on the imprest system.?
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Reliance Ltd has a head office in Mumbai. Following is the information regarding its Nagpur branch. It supplies goods to its Nagpur Branch at 25% profit on cost price. Accounts are kept at head office from where all expenses (except petty expenses) are paid. Such petty expenses are paid by the branch which is allowed to maintain a petty cash balance of Rs. 2500 on the imprest system.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Reliance Ltd has a head office in Mumbai. Following is the information regarding its Nagpur branch. It supplies goods to its Nagpur Branch at 25% profit on cost price. Accounts are kept at head office from where all expenses (except petty expenses) are paid. Such petty expenses are paid by the branch which is allowed to maintain a petty cash balance of Rs. 2500 on the imprest system.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Reliance Ltd has a head office in Mumbai. Following is the information regarding its Nagpur branch. It supplies goods to its Nagpur Branch at 25% profit on cost price. Accounts are kept at head office from where all expenses (except petty expenses) are paid. Such petty expenses are paid by the branch which is allowed to maintain a petty cash balance of Rs. 2500 on the imprest system.?.
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