Practice Test - 05 10/11/2024
CA Intermediate UDESH Regular May/Sept 2025 (Group 1)
ADVANCE ACCOUNTING
ANSWER KEY (MCQ)
1(i). (3)
(ii). (1)
Hints & Solution
2. (H & S)
Washington Branch Trial Balance (in Rupees)
As on 30th September, 2020
Dr. Cr. Conversion
Particulars Dr. (in Rs.) Cr. (in Rs.)
(In US $) (In US $) Rate
Plant & Machinery 54,000 38 20,52,000
Furniture & Fixtures 3,600 38 1,36,800
Depreciation on 6,400 38 2,43,200
P&M = 6,000
F&F = 400
Stock (01/10/19) 28,000 39 10,92,000
Purchases 1,20,000 40 48,00,000
Sales 2,08,000 40 83,20,000
Goods from HO (Omega) 40,000 Actual 19,70,000
Wages 1,000 1,500 40 60,000
(+) O/S 500
Carriages inward 500 40 20,000
Salaries 3,000 40 1,20,000
Rent, Rates & taxes 1,000 40 40,000
Insurance 500 40 20,000
Trade expenses 500 40 20,000
Head Office A/c 57,000 Actual 21,50,000
Debtors 12,000 41 4,92,000
Creditors 8,500 41 3,48,000
Cash at Bank 2,500 41 1,02,500
Cash in hand 500 41 20,500
O/s Wages 500 41 20,500
Exchange gain (Bal. Fig.) 3,50,000
1,11,89,000 1,11,89,000
Trading and P&L A/c
Particulars Amount Particulars Amount
To Opening stock 10,92,000 By Sales 83,20,000
To Goods from Head Office 19,70,000 By Closing Stock (26,000 × 41) 10,66,000
To Purchases 48,00,000
To Carriage inward 20,000
To Wages 60,000
To Gross Profit (Bal. Fig.) 14,44,000
93,86,000 93,86,000
To Depreciation 2,43,200 By Gross Profit 14,44,000
To Salaries 1,20,000 By Exchange gain 3,50,000
To Rent, rates & taxes 40,000
To Insurance 20,000
To Trade expenses 20,000
To Net Profit (Bal. Fig.) 13,50,800
17,94,000 17,94,000
Note: Assumed that the Washington branch is a Integral foreign operation of the Omega.
3. (H & S)
Branch Stock Account
Particulars Amount Particulars Amount
To Balance b/d 1,50,000 By Goods sent to branch (returns) 24,000
To Goods sent to branch 6,75,000 By Bank (Cash Sales) 1,85,000
To Branch Debtors A/c (Returns) 10,000 By Branch Debtors A/c (Credit Sale) 3,90,000
By Balance c/d 2,36,000
8,35,000 8,35,000
Branch Adjustment Accounts
Particulars Amount Particulars Amount
To Goods sent to branch-Returns (Loading) 4,800 By Stock Reserve (Opening stock) 30,000
[24,000 × 25/125] [1,50,000 × 25/125]
To Stock Reserve (Closing stock) [2,36,000 47,200 By Goods sent to branch (Loading) 1,35,000
× 25/125] [6,75,000 × 25/125]
To Branch P&L {G.P} (Bal. Fig) 1,13,000
1,65,000 1,65,000
Branch Debtors Account
Particulars Amount Particulars Amount
To Balance b/d 50,000 By Branch stock A/c (Returns) 10,000
To Bank (Cheque Dishonoured) 8,000 By Bank A/c (Collection) 3,25,000
To Branch stock a/c (Credit Sales) (Bal. 3,90,000 By Branch P&L A/c (Discount & Bad 8,000
Fig.) debts)
By Balance c/d 1,05,000
4,48,000 4,48,000
Branch Expenses Account
Particulars Amount Particulars Amount
To Bank A/c (branch expenses) 72,500 By Branch P & L A/c (Bal. Fig.) 72,500
72,500 72,500
Branch P & L Account
Particulars Amount Particulars Amount
To Branch Expenses A/c 50,000 By Branch Adjustment (G.P.) 1,13,000
To Branch Debtors A/c 8,000
Discount 2,500
Bad Debts 5,500
To Net Profit (Bal. Fig.) 35,500
1,13,000 1,13,000
4. (H & S)
Entries in the Books of Branch
S. No. Particulars L.F. Dr. Amount Cr. Amount
(a) Expenses A/c Dr. 1,65,000
To Head Office A/c 1,65,000
(Being expenses allocated to branch by Head Office)
(b) Depreciation A/c Dr. 45,000
To Head Office A/c 45,000
(Being depreciation of branch fixed assets, whose accounts are
kept by head office)
(c) Head Office A/c Dr. 70,000
To Salaries A/c 70,000
(Being rectification of entry for payment of salaries to head office
official wrongly debited to Salaries A/c)
(d) Head Office A/c Dr. 60,000
To Debtors A/c 60,000
(Being amount collected directly from a branch customer on
behalf of the branch by Head Office)
(e) No entry in the books of branch for remittance sent by branch not
received by Head Office till 31st March 2021
Note: In entry (e) the cash in transit entry will be passed in the Books of the Head Office.
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