From the following figure for a year relating to the Delhi branch of a...
Branch Account
- Goods Invoiced to Branch: Rs. 100,000
- Cost to Branch: Rs. 100,000 (Cost price) + Rs. 100,000 (100% mark-up) = Rs. 200,000
- Total Sales to Branch: Rs. 200,000
Branch Stock Account
- Opening Stock: Rs. 10,000
- Goods Received from Head Office: Rs. 100,000
- Closing Stock: Rs. 25,000 (actual branch stock)
- Stock at Cost: Rs. 100,000 + Rs. 10,000 (opening) - Rs. 25,000 (closing) = Rs. 85,000
Branch Data Account
- Cash Received from Branch: Rs. 10,000
- Expenses Incurred: Rs. 25,000
- Net Cash Flow: Rs. 10,000 (received) - Rs. 25,000 (expenses) = -Rs. 15,000 (deficit)
Branch Profit and Loss Account
- Sales Revenue: Rs. 200,000
- Cost of Goods Sold: Rs. 100,000 (goods invoiced to branch)
- Gross Profit: Rs. 200,000 (sales) - Rs. 100,000 (cost) = Rs. 100,000
- Net Profit Calculation:
- Gross Profit: Rs. 100,000
- Less: Expenses: Rs. 25,000
- Net Profit: Rs. 100,000 - Rs. 25,000 = Rs. 75,000
This summary provides a clear view of the financial activities of the Delhi branch, including sales, stock management, cash flow, and profit outcomes, ensuring a comprehensive understanding of the branch's financial performance for the year.