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Arshad & Co

Accounting

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Arshad & Co. have a sales branch at Sialkot and charge all goods sent to branch at cost price plus 30%. It is arranged that all cash received by the branch is to be paid daily to the Head office Account with HBL and the necessary advice to the Head office. All expenses are paid from Head Office. From the following particulars, prepare Branch Account in the Head office ledger showing the actual profit of the branch for the month ending 31st January 2020. Stock on 1-1-2020 Goods sent to Branch Debtors on 1-1-2020 Cash sent to H.O 12,000 100,000 1,500 77,100 Rent, rates, etc. Salaries and wages Debtors on 31-01-2020 Stock on 31-01-2020 3,200 4,800 1,600 14,800