1_5100748592893657251.pdf - -1 ACCOUNTING FOR BRANCHES...

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- 1 - ACCOUNTING FOR BRANCHES SOLUTION SET Answer to Question No.6. Nagpur Branch stock A/c Particulars Rs. Particulars Rs. To bal b/d 24,000 By branch cash a/c 1,80,000 To Goods sent to branch a/c 4,80,000 By branch debtors a/c 2,80,000 To branch debtors a/c 6,000 By balance c/d 48,000 By branch profit & loss a/c (stock shortage) (balancing figure) 2,000 5,10,000 5,10,000 Nagpur Branch adjustment A/c Particulars Rs. Particulars Rs. To closing stock reserve 12,000 By Goods sent to branch 1,20,000 To stock shortage reserve 500 By opening stock reserve 6,000 To branch P/L (b/f) 1,13,500 1,26,000 1,26,000 Nagpur Branch Debtors A/c Particulars Rs. Particulars Rs. To balance b/d 30,000 By branch stock 6,000 To branch cash (cheque dishonored ) 5000 By branch P/L: Discount Bad debts 1000 1500 To branch stock A/c (b/f) 2,80,000 By branch cash 2,70,000 By balance c/d 36,500 3,15,000 3,15,000 Branch debtors account shall be closed first, then branch stock account shall be closed and then branch stock adjustment account shall be closed.