DON BOSCO COLLEGE
TC Palya, Bangalore
Financial Accounting
Module- 4- Branch Accounting
Problems on Branch Accounting
1. R Bros. operate the retail branch at Bengaluru. All the purchases made by the H.O at
Mumbai, goods being charged out to branch at cost price. All cash received by branch is
remitted to Mumbai. Branch petty expenses are paid by imprest which is reimbursed by
H.O. time to time Prepare Branch A/C in the books of H.O to ascertain profit.
Balances at 1st April 2020 Amount
Stock at cost 8,000
Petty cash 800
Plant 10,000
Balances as on 31st March 2021
Stock at cost 7,000
Goods sent to branch 50,000
Petty expenses by paid by the branch out of imprest Rs.700. Cash sales during the year
70,000, sale of plant on 1/4/2020 Rs. 800 (Book value of plant on the date of sale 900)
Expenses paid by H.O 5,000
It is required to write off the plant at 20% p.a.
2. From the following, prepare Mysore Branch A/C in books of H.O in Bengaluru.
Stock on hand at branch 1/4/2020 10,000
Debtors at branch 4,000
Petty cash at branch 500
Furniture at branch 2,000
Prepaid insurance 150
Outstanding salary 100
Goods sent to branch 80,000
Cash sales by branch 1,30,000
Credit sales by branch 40,000
Amount collected from debtors 35,000
Amount received by the H.O
directly from branch debtors-2,000
Discount allowed to branch debtors 100
Cash sent to branch for expenses
Rent- 2,000
Salaries- 2,400
Petty expenses- 1,000
Insurance Premium- 600
Goods returned to H.O from branch 1,000
Goods returned to H.O from branch debtors 2,000
stock on hand at branch 5,000
Petty expenses at branch 850
Depreciation on furniture at 10% p.a.
3. From the following information, relating to Bengaluru branch opened in 2019-20.
Prepare branch A/C for the year 2019-20 and 2020-21.
Particulars 2019-20 2020-21
Goods sent to branch 3,00,000 4,20,000
Cash sales 1,20,000 1,92,000
Credit sales 2,16,000 3,00,000
Cash received from debtors 1,92,000 2,40,000
Discount allowed 3,000 9,000
Bad debts 3,000 6,000
Cash sent to branch for expenses 42,000 60,000
Stock on 31st March 48,000 84,000
st
Petty cash on 31 March 1,000 1,200
4. From the following information, prepare branch A/C of Tumkuru branch in the books
of Bengaluru H.O for the year ended 31/03/2022.
Particulars 1/4/21 31/3/22
Stock (at cost ) 30,000 50,000
Debtors 60,000 96,000
Petty cash 600 400
Goods sent to branch (at cost) 5,04,000
Cash sales 1,20,000
Cash received from debtors 4,20,000
Credit sales 4,56,000
Cheques sent to branch for expenses 23,200
Goods returned by the branch 4,000
5. From the following, prepare Mysore Branch A/C in books of H.O in Bengaluru.
Stock on hand at branch 1/4/2020 40,000
Debtors at branch 15,000
Petty cash at branch 2,000
Furniture at branch 12,000
Prepaid insurance 2,300
Outstanding salary 4,100
Goods sent to branch 3,30,000
Cash sales by branch 2,80,000
Credit sales by branch 1,83,000
Cash collected from debtors 1,35,000
Cash paid by the branch debtors direct to H.O 22,000
Discount allowed to branch debtors 2,300
Cash sent to branch for expenses
Rent- 15,000
Salaries- 10,800
Petty expenses- 4,000
Insurance Premium (upto 30th June 2021)- 2,600
Goods returned to H.O from branch 5,000
Goods returned to H.O from branch debtors 7,200
stock on hand at branch -36,000
Petty expenses at branch – 3,850
Depreciation on furniture at 10% p.a.
6. Find the load and invoice price, when goods sent to branch (at cost) Rs.1,50,000.
Goods are invoiced to branch at cost plus 25%.
7. Kolar HO sends goods to its KGF branch at a profit of 20% on cost, HO sends goods
for Rs.1,00,000. Calculate the cost price.
8. Prepare a branch A/C in the books of Head office from the following particulars in the
books of HO from the following information for the year ended 31st March 2018,
assuming that HO sold goods at cost plus 25%.
Stock (1/4/2019) (Invoice price)- 12,500
Debtors on 1/4/2019- 5,000
Petty cash on 1/4/2019- 1,000
Goods sent to branch (IP)- 40,000
Goods returned to HO (IP)- 5,000
Cash sales- 12,000
Cash received from debtors- 30,000
Bad debts- 2,000
Returns inwards- 1,000
Allowances to customers- 1,000
Charges sent to bank:
Rates & taxes-3,000
Salaries- 8,000
Miscellaneous expenses- 1,000
Stock (31/3/2020)-15,000
Branch debtors (31/3/2020)-4,000
Petty cash (31/3/2020)- 1,000