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UNIT 4Accounting for branch and departments Q1) Explain needs and types of branch.A1) INTRODUCTION: -A branch may be defined as section of an enterprise, geographically separated from the rest of the business, controlled by head office, and generally carrying on the same activities as of the enterprise. As a business grow, it may open up branches in different towns and cities in order to market its product/services over a large territory and thus increase its profit. For example, Bata shoe Co. Ltd has branches in various cities all over the country. The same example holds good for a commercial bank also.As per the provision of Companies Act, branch office in relation to a company means-a) Any establishment described as a branch by the company; or b) Any establishment carrying on either the same or substantially the same activity as that carried on by the head office of the company; orc) Any establishment engaged in any production, processing or manufacture. It should be mentioned that a branch is not a separate legal entity it is simply a segment of a business. From an accounting standpoint, a branch is a clearly identifiable profit centre. In order to exercise greater control over the branches it is necessary to ascertain profit or loss made by such branches separately. Apart from this, specialised accounting techni9have to be adopted for controlling various branches activities and for their smooth running both at the branch level and at the head office level. The system of accounting varies between different enterprises in accordance with their type of activities, methods of operation and the preference of their managements. NEED FOR BRANCH ACCOUNTING

Ascertain the profitability of each branch separately for particular accounting period.

Ascertain the financial position of each branch separately at the end of that accounting period.

Assess the progress and performance of each branch

Incorporate the profit or loss made by the branch and its assets and liabilities in the firm's final accounts

Ascertain the requirements of cash and stock for each branch,

Ascertain whether the branch should expended or closed

TYPES OF BRANCHES From accounting point of view, the branches can be divided into the following main cases: 1) HOME BRANCHES: -a) Dependent Branches (Where the head office maintains all the accounts)b) Independent Branches (Where the branch keeps its own accounts) 2) FOREIGN BRANCHES: -They almost invariably trade independently and record their transaction in foreign currency. Dependent Branches When the policies and administration of a branch are totally controlled by the head office, who also maintains its accounts, the branch is called as dependent branch. Independent Branches Independent Branches are those which make purchases from outside, get goods from Head Office, supply goods to Head Office and fix the selling price by itself Thus an independent Branch enjoys a good amount of freedom like an American Son. Q2) Explain accounting system of branchesA2) The accounting arrangement of a branch depends upon its size, the type of activities, the methods of operation and the degree of control to be exercised by the head office. There are three main system of accounting for branches transaction, viz.

Debtors System

Stock and Debtors System

Final Account system

This system of accounting is suitable for the small- size branches. Under this, a Branch Account is opened for each branch in the head office ledger. All the transaction relating to that branch is recorded in this account. The branch account is prepared in such a way that it discloses the profit or loss of the branch. Head office may send goods to branch either at "cost price" or "selling price". Cost price method: - under this method at the beginning of the year the branch Account is debited with the opening balances of asset such as stock, petty cash, furniture, prepaid expenses, etc. lying with the branch. Similarly, it is credited with the opening balance of liabilities of the branch such as, creditors, ots salary, rent, etc. The branch is then debited with the amount of goods sent to the branch and other amounts remitted to meet various expenses such as, salaries, rent, rates, taxes, etc. Likewise, the branch account is credited with the return of goods by the branch and receipts from branches. At the year end, Branch Account is debited with the closing values of liabilities and credited with the closing values of assets. The difference between the two sides represents profit or loss for the branch for a particular period. DEBTORS METHODJournal entries1) For goods sent to branchBranch A/c _______Dr. To Goods Sent to Branch A/c (Being goods sent to branch) 2)For goods returned by the branchGoods Sent to Branch A/c _______Dr.To Branch A/c(Being goods returned by the branch) 3) For amount sent to branch for expensesBranch A/c _______ Dr. To Bank A/c (Being cheque sent to branch for expenses) 4) For amount received from branch Bank A/c _______ Dr.To Branch A/c(Being cash or cheque received from branch) 5) For closing goods sent to branch account Goods Sent to Branch Alc Dr. To Purchase A/c(Being balance transferred to Trading Account) 6) For closing balances of assets at the branch Branch Assets A/c ________ Dr. (Individually) To Branch A/c(Being closing balances of assets brought into account) 7) For closing balances of Liabilities at the branch Branch A/c ________Dr.To Branch Liabilities A/c (Individually) (Being closing balances of liabilities brought into account) 8) For transferring Profit or Loss to General Profit and Loss Account i) If ProfitBranch A/c _______ Dr. To General Profit and Loss A/c (Being branch profit transferred to General P & L A/c) ii) If Loss General Profit and Loss A/c ________ Dr.To Branch A/c (Being branch loss transferred to General P & L A/c) The closing balances of branch assets and liabilities are shown in the Balance Sheet of the head office. At the beginning of the next year, the entire numbers 6 and 7 are reversed so as to show opening balances in the Branch Account. STOCK AND DEBTORS METHOD: Under this method accounts relating to branch are maintained in a more comprehensive and detailed manner as compared to Debtors method. This method keeps a better control stock. Under this method separate accounts are prepared for various accounting function This accounting procedure under this method depends upon the policy of head office with regard to pricing of goods send to branch. Head office may adopt one of the following methods for invoicing goods to branch.

At cost price to head office.

At selling price of the branch.

At cost price plus fixed margin of profit. In this case branch may sell goods at higher or lower than the invoice price.

When goods have been invoiced to branch at cost price. In this case following accounts are prepared. a) Branch Stock Account b) Goods sent to Branch Accountc) Branch Debtors Account d) Branch Expenses Accounte) Branch Profit & Loss Account f) Branch Cash Account I) When goods are sent to the branch (at invoice price) Branch Stock A/c _____ Dr. To Goods Sent to Branch A/c 2) When goods are returned by the branch to the H.O. (at invoice price) Goods Sent to Branch A/c _______ Dr. To Branch Stock A/c 3) When sales are made by the branch i) For Cash Sales Cash A/c _______ Dr.To Branch Stock A/c ii) For Credit Sales Branch Debtors A/c _______ Dr. To Branch Stock A/c 4) When Cash is Received from Debtors Cash A/c ______ Dr.To Branch Debtors A/c 5) For Sales Returns Branch Stock A/c ________ Dr.To Branch Debtors A/c 6) For discount allowed, bad debts, etc. Branch Expenses A/c ________ Dr.To Branch Debtors A/c 7) For Shortage of Stock Branch Adjustment A/c ________ Dr.(with amount of loading) Branch P & L A/c ________ Dr. (with cost of shortage) To Branch Stock A/c For surplus at branch, the reverse entry will be passed. 8) For Branch Expenses paid in Cash Branch Expenses A/c ______ Dr.To Cash A/c 9) For Closing Branch Expenses Account Branch P&L A/c ______ Dr. To Branch Expenses A/c 10) For Adjustment of Loading on the Opening Stock Stock Reserve A/c ______ Dr.To Branch Adjustment A/c 11) For Adjustment of Loading on the Closing StockBranch Adjustment A/c ______ Dr.To Stock Reserve A/c 12) For Adjustment Loading Goods sent to Branch Goods Sent to Branch A/c ________ Dr. To Branch Adjustment A/c 13) For Transfer of Gross Profit Branch Adjustment A/c _______ Dr. To Branch P & L A/c Q3) Suri is having his Head office at Mumbai and Branch Office at Nasik. Prepare the branch Account in the books of the Head Office from the following transaction with the branch:

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
Opening Balance at Branch:		Amounts remitted to the Branch for :
- Petty Cash	1,000	- Petty Cash Expenses	4,000
- Stock	39,500	- Salary	12,000
- Debtors	21,000	- Rent and Taxes	3,500
Goods Supplied to Branch during the year	3,10,000	Closing balances ay Branch:
Amounts remitted by the branch		- Petty	950
- Cash Sales	1,13,200	- Debtors	53,000
- Realisation from Debtors	2,30,300	- Stock	26,500

A3)IN THE BOOKS OF H.O.Dr. NASIK BRANCH ACCOUNT. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d		By Bank (Remittance):
Branch petty cash	1,000	- Petty Cash Expenses	4,000
Branch Stock	39,500	- Salary	12,000
Branch Debtors	21,000	- Rent and Taxes	3,500
To Goods sent to Branch	3,10,000	Closing balance at Branch
To cash remitted for:		- Petty Cash	950
Petty Cash Expenses	4,000	- Debtors	53,000
Salary	12,000	- Stock	26,500
Rent	3,500
To General P&L (Bal Fig)	32,950
TOTAL	4,23,950	TOTAL	4,23,950

Q4) D of Delhi have a branch at Madras. Goods are sent by the Head Office at Invoice Price which is at the Profit of 25% on Cost Price. All the Expenses of the branch are paid by the Head Office. From the following particulars, prepare Branch Account in Head Office Books

BALANCES	OPENING	CLOSING
Stock at invoice	11,000	13,000
Debtors	1,700	2,000
Petty Cash	100	25
TOTAL	12,800	15,025

Goods sent to branch at invoice price Rs. 20,000.Expenses made by head office: -Rent Rs.600, Wages Rs.200, Salaries Rs.900Remittance made to Head Office: - Cash Sales Rs. 2,650, Cash collected from debtors Rs. 21,000Goods Returned by Branch at Invoice Price Rs.400 A4)IN THE BOOKS OF HEAD OFFICE Dr. MADRAS BRANCH A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Balance b/d			By Stock Reserve A/c b/d(Load on OP. Stock 11,000 X 25/125)		2,200
Stock (IP)		11,000	By Bank
Debtors		1,700	Cash Sales	2,650
Petty Cash		100	Cash collected from Debtors	21,000	23,650
To Goods sent to Branch (IP)		20,000	By Goods sent to branch (Returns at IP)		400
To Bank (Expenses):			By Goods sent to branch (19,600 X 25/125; net Loading)		3,920
Rent	600		By Balance c/d
Wages	200		Stock (IP)	13,000
Salaries	900	1,700	Debtors	2,000
To Stock Reserve A/c c/d(Load on Cl. Stock 13,000 X 25/125)		2,600	Petty Cash	25	15,025
To Net Profit tfd to general P&L (Bal Fig)		8,095
TOTAL		45,195	TOTAL		45,195

Note: Goods are sent by Head Office at @ 25% on Cost Price.So, Cost + Profit = Invoice Price 100 + 25 = 125Profit charged by Head Office is 1/5 or 20% of Invoice Price. Q5) One M.P. Head Office has a branch at Berhampur to which goods are invoiced at cost plus 20% .from the following particulars prepare the Branch Account in the Head Office Books :

PARTICULARS	AMOUNT
Goods sent to Branch at invoice Price	2,11,872
Total Sales	2,06,400
Cash Sales	1,10,400
Cash received from Branch Debtors	88,000
Branch Debtors at commencement	24,000
Branch Stock at commencement at Invoice price	7,680
Branch Stock at Close of the period at Invoice Price	13,440

A5)IN THE BOOKS OF M.P. HEAD OFFICEDr. BERHAMPUR BRANCH ACCOUNT. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Balance b/d			By Stock Reserve A/c b/d(Load on OP. Stock)		1,280
Stock (IP)		7,680	By Bank
Debtors		24,000	Cash Sales	1,10,400
To Goods sent to Branch (IP)		2,11,872	Cash collected from Debtors	88,000	1,98,400
To Stock Reserve A/c c/d(Load on Cl. Stock)		2,240	By Goods sent to branch (2,11,872 X 20/120; net Loading)		35,312
To Net Profit tfd to general P&L (Bal Fig)		34,640	By Balance c/d
			Stock (IP)	13,440
			Debtors	32,000	45,440



TOTAL		2,80,432	TOTAL		2,80,432

Working Note:Dr. BERHAMPUR BRANCH DEBTORS ACCOUNT. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	24,000	By Cash	88,000
To Credit Sales	96,000	By balance c/d (balancing figure)	32,000
TOTAL	1,20,000	TOTAL	1,20,000

(2)Total Sales =2,06,400Less: - Cash Sales =1,10,400Credit Sales =96,000 (3)Goods are sent by Head Office at @ 20% on Cost Price.So, Cost + Profit = Invoice Price 100 + 20 = 120Profit charged by Head Office is 1/6 of Invoice Price. Q6) The Canada commercial company invoiced goods to its Jaipur Branch at cost. The head office paid all the branch expenses from its bank except petty cash expenses which were Paid by the branch. From the following details relating to the branch, prepare (1): Branch Stock A/c (2)Branch Debtors A/c(3)Branch Expenses A/c(4)Branch P&L A/c

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
Stock (Opening)	21,000	Discount to Customer	4,200
Debtors (Opening)	37,800	Bad Debts	1,800
Petty Cash(Opening)	600	Goods returned by customers to branch	1,500
Goods sent to H.O.	78,000	Salaries	18,600
Goods returned to H.O.	3,000	Rent	3,600
Cash Sales	52,500	Debtors(Closing)	29,400
Advertisement	2,400	Petty Cash (Closing)	300
Cash received from debtors	85,500	Credit Sales	85,200
Stock(Closing)	19,500
Allowances to Customer	600

A6)Dr. BRANCH STOCK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	21,000	By Branch Cash	52,500
To Goods sent to sent Branch	78,000	By Goods sent to Branch	3,000
To Branch Debtors	1,500	By Branch Debtors	85,200
To Branch P&L (Transfer)	59,700	By Balance c/d	19,500
TOTAL	1,60,200	TOTAL	1,60,200

Dr. BRANCH DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	37,800	By Branch Cash	85,500
To Branch Stock (Credit Sales)	85,200	By Branch expenses Bad Debts 1,800 Allowances 600 Discount 4,200	6,600
		By Branch Stock (Returns)	1,500
		By Balance c/d	29,400
TOTAL	1,23,000	TOTAL	1,23,000

Dr. BRANCH EXPENSES A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Branch Debtors	6,600	By Branch P&L	31,500
To Bank Advertisement 2,400 Salaries 18,600 Rent 3,600	24,600
To Petty Expenses (600-300)	300

TOTAL	31,500	TOTAL	31,500

Dr. BRANCH PROFIT & LOSS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Branch Expenses	31,500	By Branch Stock	59,700
To General P&L (Bal Fig)	28,200
TOTAL	59,700	TOTAL	59,700

Q7) Explain departmental accounts.A7) IntroductionDepartmental Accounting refers to maintaining accounts for one or more branches or departments of the company. Revenues and expenses of the department are recorded and reported separately. The departmental accounts are then consolidated into accounts of the head office to prepare financial statements of the company. The departmental stores are the example of large-scale retail selling just under a single roof. Different departments involve in different goods to be sold out. To calculate the net result of the whole organization, full-fledged trading, and profit, and loss account are to prepare. But to evaluate individual department, it will be creditworthy to prepare individual trading and profit and loss account. For example, a textile mill which is having head office and factory. Separate accounts are maintained for production facilities and then the final results are sent to the head office which then incorporates by the head office in their accounts. Maintenance of separate accounts for each branch of a bank or financial institution also falls under the category of departmental accounting. The bank then prepares its financial statement after consolidating accounts of all branches. A departmental accounting system is an accounting information system that records the activities and financial information about the department. Departmental Accounting is a vital one for large prosperous business organizations. It controls wastage & misusing, compensates the employee in terms of profit and commission, compares performance and progress of year to year or department to department or similar type of firm to firm. Meaning & Concept of Departmental Accounting Meaning of Departmental Accounting: Where a big business with diverse trading activities conduct under the same roof the same usually divide into several departments and each department deals with a particular kind of goods or service. For example, a textile merchant may trade in cotton, woollen and jute fabrics. The overall performance for this type of business depends, however, on departmental efficiency. As a result, it is desirable to maintain accounts in such a manner that the result of each department can be known—together with the result as a whole. The system of accounting follows for this; the purpose knows as Departmental Accounts. This system of accounting helps the proprietors to:

Compare the results among the different departments together with the previous results thereof,

Formulate policy to extend or to develop the enterprise in the proper line; and

Reward the departmental managers based on departmental results.

The Concept of Departmental Accounting: Departmentalization enables big firms to determine the areas needing special attention to the achievement of overall objectives. The units or departments needing more funds and more attention than others and the one(s) contributing more toward goal attainment could be identified with good departmentalization. The purpose is basically to find out the performance and capability of the units or departments to make adjustments for the achievement of the firm’s objectives. Each unit, department or subsidiary gives the free use of some of the assets of the firm and some responsibilities which can be profit-making, revenue generation or cost control. As expenses incur by the firm on behalf of all its departments, indirect expenses are to apportion to the departments, if each department is to present a financial statement or if the statement is to prepare by the company on a departmental basis. Departmental accounting is about the preparation of final accounts taking into consideration divisional performance before the overall performance. With that system of accounting, companies that departmentalize can easily conclude as they are very well’ performing units, averagely or moderately performing units. Departmental accounting aims at separating the several activities of a business to compare results and to assist the proprietors/owners in formulating policies. Objectives of Departmental Accounting: The main objectives of departmental accounting are:

To check out an interdepartmental performance.

To evaluate the performance of the department with the previous period result.

The gross profit of each department can ascertain.

Unprofitable departments will reveal.

The result of operations can use to determine the remuneration of managers of each department.

The progress of each department can monitor for appropriate actions to take.

To help the owner formulating the right policy for the future.

To assist the management in deciding to drop or add a department.

It helps in determining the commission of the department manager when it links to profit achieved by their department.

It can help the management in deciding which department should develop more and which should close to maximize the profitability of the whole company.

To provide detail information about the entire organization, and.

To assist management for cost control.

It also helps in allocating costs to various departments and therefore helps in better control of the cost of the departments of the company.

For a company that is dealing with multiple products, it is much easier to control and monitor several departments based on the products they sell rather than controlling it as one single business.

Q8) Explain techniques of departmental accountingA8) Departmental accounts are prepared in such a manner that all desired information is available and departmental profit can correctly make. There are two methods:

Where the individual set of books maintains, and.

Where all departmental accounts maintain columnar- wise collectively.

They are as explained below: Where Individual Set of Books are maintained: Under this method, the accounts of each department independently maintain. The departmental results of all the departments collect and take into consideration to find out the net result of the organization. Where All Departmental Accounts are maintained Columnar-Wise Collectively:A Departmental Trading and Profit and Loss Account open for each department in a columnar form together with a separate column for ‘Total’ to ascertain the individual result of the different departments and also as a whole. But the Balance Sheet prepares in a combining form. And to incorporate the purchase and sale of goods, the subsidiary books and also the nominal accounts into the ledger must be ruled out with extra columns for each department in arriving at the desired departmental figures to prepare departmental final accounts. If there is a larger volume of cash purchase and cash sales, the Cash Book also must maintain separate columns for cash purchases and cash sales of various departments. Advantages of Departmental Accounting The most significant advantages of departmental accounts are:

Individual results of each department can know which helps to compare the performances among all the departments, i.e., the trading results can compare.

Departmental accounts help to understand or locate the success, failure, rates of profit, etc.

It helps the management to make a proper plan of action, policies to increase profit after analyzing the results of the operation of various departments.

Departmental accounting helps us to understand which department should be expanded further or which one should close down as per the results of the operation.

It also helps to encourage a healthy competitive spirit among the various departments which, ultimately, helps to increase profits of the firm as a whole.

For additions or alterations of various departments, departmental accounts help a lot as it supplies the necessary information.

As detailed information about the firm is available from departmental accounting the users of accounting information, particularly, the auditors and investors widely benefit.

Since departmental accounting presents separate departmental results, the Performance, of a successful department encourages the management, employees and increases the motivation of the staff as a whole.

The percentage of gross profit on sales and stock turnover ratio of each department helps to make a comparative study among all departments.

Q9) Explain types of department.A9) Types of DepartmentsThere are two types of departments: Dependent and Independent Departments. Independent DepartmentsDepartments which work independently of each other and have negligible inter- department transfers are called Independent Departments. Dependent DepartmentsDepartments which transfer goods from one department to another department for further processing are called dependent departments. Here, the output of one department becomes the input for the other department. These transfers may be done at cost or some pre-decided selling price. The price at which this is done is known as transfer price. In these departments, unloading is required if the transfer price is having a profit element. The method of eliminating unrealised profit will be discussed later. Inter Departmental TransfersWhenever goods or services are provided by one department to another, their cost should be separately recorded and charged to the department benefiting thereby and credited to that providing the goods or services. The totals of such benefits (inter-departmental transfers) should be disclosed in the departmental Profit and Loss Account, to distinguish them from other items of expenditure. Basis of Inter-Departmental TransfersGoods and services may be charged by one department to another usually on any of the following three bases: (i) Cost,(ii) Current market price,(iii) Cost plus agreed percentage of profit. Elimination of Unrealised ProfitWhen profit is added in the inter-departmental transfers the loading included in the unsold inventory at the end of the year is to be excluded before final accounts are prepared so as to eliminate any anticipatory (internal) profit included therein. Stock ReserveUnrealised profit included in unsold stock at the end of accounting period is eliminated by creating an appropriate stock reserve by debiting the combined Profit and Loss Account. The amount of stock reserve will be calculated as:Transfer price of unsold stock × Profit included in transfer price Q10) Mumbai Textile Mills Ltd. Has branch at Agra. Goods are invoiced to branch at cost plus 50%. Branch remits all cash received to the head office and all expenses are met by head office. From the following particulars, prepare the necessary accounts under the Stock and Debtors system to Show the Profit Earned at the Branch:

PARTICULARS	AMOUNT
Stock on the 1st April,2013 (Invoice Price)	93,000
Debtors on 1st April,2013	68,000
Goods Invoiced to Branch (Cost)	3,40,000
Sales at Branch:
Cash	2,50,100
Credit	3,10,000
Cash Collected from Debtors	3,04,000
Goods Returned by Debtors	12,000
Goods Returned by Branch to head office	1,500
Shortage of Stock	4,500
Discount Allowed to Customer	2,000
Expenses at Branch	54,000

A10)Dr. BRANCH STOCK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	93,000	By Branch Cash (Cash Sales)	2,50,100
To Goods sent to sent Branch (3,40,000 X 150%)	5,10,000	By Branch Debtors(Credit Sales)	3,10,000
To Branch Debtors	12,000	By Goods sent to Branch	1,500
		By Branch Adjustment (Shortage)	4,500
		By Balance c/d	48,900
TOTAL	6,15,000	TOTAL	6,15,000

Dr. BRANCH ADJUSTMENT A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Branch Stock(Shortage)	4,500	By Stock Reserve(Loading on Opening Stock)	31,000
To Goods Sent to Branch	500	By Goods Sent to Branch	1,70,000
To Gross Profit c/d	1,79,700
To Stock Reserve(Loading on Closing Stock)	16,300
TOTAL	2,01,000	TOTAL	2,01,000

Dr. BRANCH PROFIT & LOSS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Branch Expenses	54,000	By Branch Stock (Gross Profit)	1,79,700
To Discount	2,000
To General P&L (Bal Fig)	1,23,700
TOTAL	1,79,700	TOTAL	1,79,700

Dr. GOODS SENT TO BRANCH A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Branch Stock	1,500	By Branch Stock	5,10,000
To Branch Adjustment	1,70,000	By Branch Adjustment	500
To Trading A/c(Bal Fig)	3,39,000

TOTAL	5,10,500	TOTAL	5,10,500

Dr. BRANCH DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	68,000	By Branch Cash (Received from Debtors)	3,04,000
		By Branch expenses (Discount)	2,000
To Branch Stock (Credit Sales)	3,10,000	By Branch Stock (Returns)	12,000
		By Balance c/d	60,000
TOTAL	3,78,000	TOTAL	3,78,000

Dr. BRANCH CASH A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Sales	2,50,100	By Head Office Cash	5,54,100
To Debtors	3,04,000	(Sent to HO)
TOTAL	5,54,100	TOTAL	5,54,100

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