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Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000?
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Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to ...
Branch Account
Particulars | Amount (Rs.)
--- | ---
To H.O (Goods) | 19,200
To Expenses | 2,000
To Stock (Closing) | 4,000
To Gross Profit c/d | 8,060
| 33,260
Particulars | Amount (Rs.)
--- | ---
By Sales (Credit) | 18,460
By Cash received from Debtors | 12,860
By Cash Sales | 5,000
By Gross Profit b/d | 8,060
| 33,260
Calculation of Profit
Sales (Credit) + Cash received from Debtors + Cash Sales = Total Sales
18,460 + 12,860 + 5,000 = 36,320
Total Sales - Cost of Goods Sold = Gross Profit
36,320 - 19,200 = 17,120
Gross Profit / Cost of Goods Sold * 100 = Profit Margin
17,120 / 19,200 * 100 = 89.17%
Profit Margin * Cost of Goods Sold = Profit
89.17% * 19,200 = 17,175.84
Explanation
The branch account is prepared to record the transactions of the branch for the accounting period. The opening entry is made for the goods invoiced by the H.O. to the branch. This is followed by recording the expenses paid by the H.O. on behalf of the branch and the closing stock at the end of the accounting period.
The sales made by the branch are recorded in the credit sales, cash received from debtors and cash sales accounts. These are then transferred to the branch account. The gross profit for the accounting period is calculated by deducting the cost of goods sold from the total sales.
The profit earned by the branch is calculated by multiplying the profit margin with the cost of goods sold. The profit margin is calculated by dividing the gross profit by the cost of goods sold and multiplying the result by 100.
Particulars | Amount (Rs.)
--- | ---
To H.O (Goods) | 19,200
To Expenses | 2,000
To Stock (Closing) | 4,000
To Gross Profit c/d | 8,060
| 33,260
Particulars | Amount (Rs.)
--- | ---
By Sales (Credit) | 18,460
By Cash received from Debtors | 12,860
By Cash Sales | 5,000
By Gross Profit b/d | 8,060
| 33,260
Calculation of Profit
Sales (Credit) + Cash received from Debtors + Cash Sales = Total Sales
18,460 + 12,860 + 5,000 = 36,320
Total Sales - Cost of Goods Sold = Gross Profit
36,320 - 19,200 = 17,120
Gross Profit / Cost of Goods Sold * 100 = Profit Margin
17,120 / 19,200 * 100 = 89.17%
Profit Margin * Cost of Goods Sold = Profit
89.17% * 19,200 = 17,175.84
Explanation
The branch account is prepared to record the transactions of the branch for the accounting period. The opening entry is made for the goods invoiced by the H.O. to the branch. This is followed by recording the expenses paid by the H.O. on behalf of the branch and the closing stock at the end of the accounting period.
The sales made by the branch are recorded in the credit sales, cash received from debtors and cash sales accounts. These are then transferred to the branch account. The gross profit for the accounting period is calculated by deducting the cost of goods sold from the total sales.
The profit earned by the branch is calculated by multiplying the profit margin with the cost of goods sold. The profit margin is calculated by dividing the gross profit by the cost of goods sold and multiplying the result by 100.
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Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000?
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Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000? 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 Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000?.
Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000? 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 Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000?.
Solutions for Goods are invoiced to a newly opened by the H.O at Rs.19200 so as to give 25% profit on cost. From the following particulars, prepare branch a/c and find the profit earned by the branch. credit sales by branch 18,460. cash received from debtors 12,860. expenses paidby H.O 2,000. cash sales by the branch 5,000. stock at end(invoice price) 4,000? in English & in Hindi are available as part of our courses for B Com.
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