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Harrison of Chennai has a branch at New Delhi to which goods are sent @...

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Accounting

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Harrison of Chennai has a branch at New Delhi to which goods are sent @ 20% above cost. The branch makes both cash and credit sales. Branch expenses are met partly from H.O. and partly by the branch. The statement of expenses incurred by the branch every month is sent to head office for recording. Following further details are given for the year ended 31st December, 20X1: Cost of goods sent to Branch at cost Goods received by Branch till 31-12-20X1 at invoice price Credit Sales for the year @ invoice price Cash Sales for the year @ invoice price Cash Remitted to head office Expenses paid by H.O. Bad Debts written off Balances as on 1-1-20X1 2,00,000 2,20,000 1,65,000 59,000 2,22,500 12,000 750 31-12-20X1 Stock 25,000 (Cost) 28,000 (invoice price) Debtors 32,750 26,000 Cash in Hand 5,000 2,500 Show necessary ledger accounts in the books of the head office and determine the Profit and Loss of the Branch for the year ended 31st December, 20X1

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