Bangladesh Handloom Co-operative has a branch in Khulna. Goods are invoiced to Khulna at cost...
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Bangladesh Handloom Co-operative has a branch in Khulna. Goods are invoiced to Khulna at cost plus 331/3%. Khulna branch maintain only sales ledger, except that all other transactions are recorded in Head Office book. Branch sells goods both in cash and credit. All cash collected by branch is sent the Head Office at regular intervals and all branch expenses are met by Head Office. The following particulars are related to the Khulna Branch for the accounting year ended 31st December 2016: Tk. 000 Tk. 000 Stock on 1st January 2016 24,000 Goods returned to H.O. (Invoice price) 4,000 Branch Debtor 1st January 2016 18,000 Discount allowed to customers 1,000 Goods received from H.O. (at cost) 72,000 Bad debts 1,400 Branch sales: Cash 20,000 Cash sent to branch for wages payment 2,000 Credit 80,000 Goods returned by debtor 4,000 Freight payment 2,500 Cash received from debtors 72,000 Salaries and other expenses 4,000 Stock at 31st December 2016 (at cost price) 13,200 From the above particulars prepare in the book by Head Office. (1) Branch Stock Account, (2) Branch Debtor Accounts, and (3) Branch Profit or Loss Account.
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