Question

Salt Lake Ltd. Kolkata invoice goods to its branch at Delhi at a profit at 25% on cost. Prepare Branch Stock Account under (i) Single Column and (ii) Double Column from the following particulars: 

Particulars	Amount	Particulars	Amount
Opening Stock (Invoice Price)	20,000	Normal Loss (Invoice Price)	1,000
Goods sent to Branch (Invoice Price)	1,20,000	Pilferage of Stock (Invoice Price)	2,000
Goods return to H.O. (Invoice Price)	5,000	Cash Sales	97,000
Goods lost in transit (Invoice Price)	5,000	Closing Stock (Invoice Price)	30,000

Answer 1

(i) Under Single column In the Books of H. O. Delhi Branch Stock Account 

Particulars	Amount	Particulars	Amount
To Balance b/d	20,000	By Branch Cash A/c
To Goods sent to branch	1,20,000	Case Sales	97,000
		By Goods sent to branch (Return)	5,000
		By Loss-in-transit	5,000
		By Normal Loss	1,000
		By Pilferage of Stock	2,000
		By Balance c/d	30,000
	1,40,000		1,40,000

(ii) Under Double Column In the Books of H. O. Delhi Branch Stock Accoun

Particulars	Invoice Price	Cost Price	Particulars	Invoice Price	Cost Price
To Balance b/d	20,000	16,000	By Branch Cash A/c
To Goods sent to branch	1,20,000	96,000	Cash Sales	97,000	97,000
To Gross Profit	--	19,400	By Goods sent to branch (Return)	5,000	4,000
			By Loss - in- transit	5,000	4,000
			By Normal Loss	1,000	800
			By Pilferage of Stock	2,000	1 600
			By Balance c/d	30,000	24,000
	1,40,000		1,31,400	1,40,000	1,31,400