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(b) When goods are sent to branch at invoice price 15. Goods are invoiced to the branch by the head office at Rs. 9,200 so as to give 25% profit on cost. From the following particulars prepare Branch Account in HO Books Rs. 8,460 Sales by the branch Furniture purchased by H.O. for branch 800 Cash remitted by the branch 8,060 Stock at the end (invoice price) 600 Returns to H.O 200 Write off depreciation at 10% Expenses paid by H.O. 200?
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(b) When goods are sent to branch at invoice price 15. Goods are invoi...
Branch Account in HO Books

Opening Balance:
- Sales by the branch: Rs. 8,460
- Furniture purchased by H.O. for branch: Rs. 800

Goods sent to branch:
- Cost of goods sent to branch (invoice price): Rs. 15,000
- Profit on cost (25% of cost): Rs. 3,750
- Invoice value of goods sent to branch: Rs. 18,750

Transactions:
- Cash remitted by the branch: Rs. 8,060
- Returns to H.O.: Rs. 200
- Expenses paid by H.O.: Rs. 200

Calculation of Closing Stock:
- Opening stock (invoice price): Rs. 600
- Goods sent to branch: Rs. 15,000
- Returns to H.O.: Rs. 200
- Closing stock (invoice price): Rs. 15,400

Calculation of Cost of Goods Sold:
- Opening stock (invoice price): Rs. 600
- Goods sent to branch: Rs. 15,000
- Returns to H.O.: Rs. 200
- Closing stock (invoice price): Rs. 15,400
- Cost of goods sold (invoice price): Rs. 600 + Rs. 15,000 + Rs. 200 - Rs. 15,400 = Rs. 400

Calculation of Gross Profit:
- Cost of goods sold (invoice price): Rs. 400
- Profit on cost (25% of cost): Rs. 3,750
- Gross profit: Rs. 3,750 - Rs. 400 = Rs. 3,350

Branch Account in HO Books:

| Particulars | Amount (Rs.) |
|-------------|--------------|
| To Sales | 8,460 |
| To Returns | 200 |
| To Expenses | 200 |
| | |
| By Cash | 8,060 |
| By Gross Profit c/d | 3,350 |
| | |
| | |
| Gross Profit b/d | 3,350 |
| | |
| Total | 11,610 |
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Explanation:

The Branch Account in HO Books is prepared to record the transactions between the branch and the head office. It helps in determining the performance of the branch and the amount due from or to the head office.

Opening Balance:
The opening balance of the Branch Account includes the sales made by the branch (Rs. 8,460) and the furniture purchased by the head office for the branch (Rs. 800).

Goods sent to branch:
The cost of goods sent to the branch is recorded at the invoice price (Rs. 15,000
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(b) When goods are sent to branch at invoice price 15. Goods are invoiced to the branch by the head office at Rs. 9,200 so as to give 25% profit on cost. From the following particulars prepare Branch Account in HO Books Rs. 8,460 Sales by the branch Furniture purchased by H.O. for branch 800 Cash remitted by the branch 8,060 Stock at the end (invoice price) 600 Returns to H.O 200 Write off depreciation at 10% Expenses paid by H.O. 200?
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(b) When goods are sent to branch at invoice price 15. Goods are invoiced to the branch by the head office at Rs. 9,200 so as to give 25% profit on cost. From the following particulars prepare Branch Account in HO Books Rs. 8,460 Sales by the branch Furniture purchased by H.O. for branch 800 Cash remitted by the branch 8,060 Stock at the end (invoice price) 600 Returns to H.O 200 Write off depreciation at 10% Expenses paid by H.O. 200? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about (b) When goods are sent to branch at invoice price 15. Goods are invoiced to the branch by the head office at Rs. 9,200 so as to give 25% profit on cost. From the following particulars prepare Branch Account in HO Books Rs. 8,460 Sales by the branch Furniture purchased by H.O. for branch 800 Cash remitted by the branch 8,060 Stock at the end (invoice price) 600 Returns to H.O 200 Write off depreciation at 10% Expenses paid by H.O. 200? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (b) When goods are sent to branch at invoice price 15. Goods are invoiced to the branch by the head office at Rs. 9,200 so as to give 25% profit on cost. From the following particulars prepare Branch Account in HO Books Rs. 8,460 Sales by the branch Furniture purchased by H.O. for branch 800 Cash remitted by the branch 8,060 Stock at the end (invoice price) 600 Returns to H.O 200 Write off depreciation at 10% Expenses paid by H.O. 200?.
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