{"id":4036,"date":"2023-10-06T09:12:03","date_gmt":"2023-10-06T09:12:03","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=4036"},"modified":"2023-10-06T09:13:34","modified_gmt":"2023-10-06T09:13:34","slug":"week-7-ss3-second-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-7-ss3-second-term-financial-accounting-notes\/","title":{"rendered":"Week 7 &#8211; SS3 Second Term Financial Accounting Notes"},"content":{"rendered":"<p>\u00a0<strong>WEEK SEVEN<br \/>\n<\/strong><strong>TOPIC:  INTRODUCTION TO BRANCH ACCOUNTS<br \/>\n<\/strong><strong>CONTENT<br \/>\n<\/strong><\/p>\n<ul>\n<li>Meaning of Branch Accounts\n<\/li>\n<li>Division of Branch Accounting\n<\/li>\n<li>Formats and Illustration\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<h2>Meaning of Branch Accounts<br \/>\n<\/h2>\n<p>A branch Account is a system of accounting adopted to record the transactions of a small part of a business organization which has or has not some degree of independence.<\/p>\n<p>\u00a0<strong>Divisions of Branch Accounting<br \/>\n<\/strong>The divisions can be:<\/p>\n<ol>\n<li>\n<div>Where the head office keeps all the accounts: This happens where the branch is fully dependent on the head office. In this case the following accounts are kept.\n<\/div>\n<ol>\n<li>Branch stock A\/C\n<\/li>\n<li>Goods sent to branch A\/C\n<\/li>\n<li>Branch stock adjustment A\/C\n<\/li>\n<li>Branch debtors A\/C (where credit sales are allowed)\n<\/li>\n<li>Branch bank A\/C\n<\/li>\n<li>Branch profit &amp; loss A\/C\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>\u00a0<\/p>\n<ol>\n<li>\n<div>Where the branches keep separate accounts: This happens where a branch is semi-autonomous. In this situation the following accounts are kept to show the relationships:\n<\/div>\n<ol>\n<li>Branch current A\/C in head office books\n<\/li>\n<li>Head office current A\/C in branch books\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h2>Pricing Methods<br \/>\n<\/h2>\n<p>Three different pricing methods are available for charging goods to branches. They are: <\/p>\n<ol>\n<li>At cost Price: This is used when the goods concerned are perishable so that branch managers can use their discretions to avoid losses.\n<\/li>\n<li>At cost plus a percentage: This helps the head office to exercise control over the branch by stating the required percentage profit.\n<\/li>\n<li>At selling price: This is a measure of control also where the branch has no choice but to sell the goods at the selling price given.\n<\/li>\n<\/ol>\n<p>\u00a0Note: Where the cost plus a percentage method of pricing is used, two method of accounting can be used also:<\/p>\n<ol>\n<li>Double column or a memorandum column method\n<\/li>\n<li>Branch adjustment method.\n<\/li>\n<\/ol>\n<p>\u00a0Memorandum or double column method.<br \/>\nThis method combines two accounts:<\/p>\n<ol>\n<li>Branch Stock Account which appears in the invoice price column and\n<\/li>\n<li>Branch Stock Adjustment Account which appears in the &#8220;cost price&#8221; column However the use of this method requires some items or transactions to be shown at the same price in the two separate columns. These items are:\n<\/li>\n<\/ol>\n<p>1.\u00a0\u00a0\u00a0\u00a0Cash sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02.\u00a0\u00a0\u00a0\u00a0Credits sales \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03.\u00a0\u00a0\u00a0\u00a0Cash remitted to head office<br \/>\n4.\u00a0\u00a0\u00a0\u00a0Cash in transit\u00a0\u00a0\u00a0\u00a05.\u00a0\u00a0\u00a0\u00a0Sundry expenses from takings (ie sales)<br \/>\n6. Sundry expenses paid out of cash \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07.\u00a0\u00a0\u00a0\u00a0Cash taken stolen.<\/p>\n<p>\u00a0Thus, the adoption of the memorandum or double column method, in cost plus percentage pricing system, requires the following accounts:<\/p>\n<ol>\n<li>Branch stock A\/C with double column i.e. memorandum branch A\/C\n<\/li>\n<li>Goods sent to branch A\/C (entries in this A\/C are made at cost price only)\n<\/li>\n<li>Branch P &amp; L A\/C\/\/\n<\/li>\n<\/ol>\n<p>\u00a0Formats of the three Account above:<br \/>\nMemorandum Branch Stock A\/C<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Invoice\u00a0\u00a0\u00a0\u00a0cost \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Invoice\u00a0\u00a0\u00a0\u00a0cost<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nStock at start\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0Rent to head office\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X<br \/>\nGoods sent to Branch\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0credit sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nGross profit C\/D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0cash sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Allowance of selling price\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Goods stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cash stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Expenses paid\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Out of takings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se1.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se2.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se3.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se4.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Normal loss\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0stock at close\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<\/p>\n<p>\u00a0<strong>Goods sent to branch A\/C (at cost)<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nReturns to branch\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0branch stock\u00a0\u00a0\u00a0\u00a0A\/C\u00a0\u00a0\u00a0\u00a0x<br \/>\nTransport to head Office<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se5.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se6.png\" alt=\"\"\/>Trading A\/C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<\/p>\n<p>\u00a0<\/p>\n<h3>Branch profit &amp; Loss A\/C<br \/>\n<\/h3>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nBranch  stock A\/C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Gross profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nSundry expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0(from memo.<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Branch Stock A\/C)<br \/>\nStock stolen at cost price\u00a0\u00a0\u00a0\u00a0x<br \/>\nCash stolen \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\nNet profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se7.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se8.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<\/p>\n<p>\u00a0<strong>Evaluation questions<\/strong><br \/>\n\t\t1.\u00a0\u00a0\u00a0\u00a0What is a branch accounts<br \/>\n2.\u00a0\u00a0\u00a0\u00a0State the pricing methods in branch accounts<\/p>\n<p>\u00a0<strong>Illustration<br \/>\n<\/strong>Suzi Ltd operates a head office in Lokoja and branch office in Lagos. All goods are purchased by Lokoja and sent to Lagos at cost plus 25%. The following information were given for the year ended 31\/12\/04.<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  N<br \/>\nCredit sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03,500<br \/>\nGoods sent to branch at cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a050,000<br \/>\nReturns to head office at cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0500<br \/>\nCash takings remitted to H.O.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010,000<br \/>\nStock at close at cost price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a012,500<br \/>\nCash takings stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0150<br \/>\nSundry expenses paid out of takings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950<br \/>\nGoods stolen at cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a040<br \/>\nAllowances off selling price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0100<br \/>\nYou are required to prepare<\/p>\n<ol>\n<li>Branch A\/C in the head office books including the necessary A\/Cs\n<\/li>\n<li>The P &amp; L A\/C for the ended 31\/12\/04\n<\/li>\n<\/ol>\n<p>The system of accounting the head office uses is the memorandum column method. <\/p>\n<p>\u00a0Solution<br \/>\nStep 1: Calculate the selling price (or invoice price) using the mark-up of 25% on cost <\/p>\n<ol>\n<li>\n<div>Selling price of goods sent to branch\n<\/div>\n<p>Profit = mark-up x cost price<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0= 25\/100 x 50,000 = N12500<\/p>\n<p>\u00a0<\/li>\n<li>\n<div>Selling price = cost + profit\n<\/div>\n<p>=\u00a0\u00a0\u00a0\u00a050,000 + 12500<br \/>\n= N623,500<\/p>\n<p>\u00a0<\/li>\n<li>\n<div>Selling price of returns to Head office\n<\/div>\n<p>=\u00a0\u00a0\u00a0\u00a0cost + mark-up<br \/>\n=\u00a0\u00a0\u00a0\u00a0N500 + (25\/100 x 500)\n<\/li>\n<\/ol>\n<p>S. P\u00a0\u00a0\u00a0\u00a0=\u00a0\u00a0\u00a0\u00a0N500 + 125 = N625<\/p>\n<p>\u00a0<\/p>\n<ol>\n<li>\n<div>Selling price of stock at close\n<\/div>\n<p>=\u00a0\u00a0\u00a0\u00a0cost + mark-up<br \/>\n=\u00a0\u00a0\u00a0\u00a0N12500 + (25\/100 x 12500\n<\/li>\n<\/ol>\n<p>S. P \u00a0\u00a0\u00a0\u00a0=\u00a0\u00a0\u00a0\u00a0N12500 + 3,125 = N15,625<\/p>\n<p>\u00a0<\/p>\n<ol>\n<li>\n<div>Selling price of goods stolen\n<\/div>\n<p>=\u00a0\u00a0\u00a0\u00a0cost + mark-up<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0=\u00a0\u00a0\u00a0\u00a0N40 + (25\/100 x N40)<br \/>\n\u00a0\u00a0\u00a0\u00a0S. P. \u00a0\u00a0\u00a0\u00a0=\u00a0\u00a0\u00a0\u00a0N40 + 10 = N50\n\t\t\t\t<\/li>\n<\/ol>\n<p>\u00a0step II: Preparation of branch stock A\/C using memorandum colum <\/p>\n<h4>Memorandum branch stock A\/C<br \/>\n<\/h4>\n<p>\u00a0Invoice\u00a0\u00a0\u00a0\u00a0cost \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Invoice\u00a0\u00a0\u00a0\u00a0cost<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Price<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nGoods sent to branch\u00a0\u00a0\u00a0\u00a062,500\u00a0\u00a0\u00a0\u00a050,000 Rent to head office\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0625\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0500<br \/>\nGross profit C\/D\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09140\u00a0\u00a0\u00a0\u00a0 credit sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03500<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0cash remitted to H. Office\u00a0\u00a0\u00a0\u00a010,000      10,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0cash takings stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0150\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0150<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0sundry expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0goods stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a050\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a040<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se9.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se10.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se11.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week7SS3Se12.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Allowance off selling price\u00a0\u00a0\u00a0\u00a0100\u00a0\u00a0\u00a0\u00a0        &#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0stock at close\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a015624\u00a0\u00a0\u00a0\u00a0     12500<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a062500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a059140\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a062500\u00a0\u00a0\u00a0\u00a0      59140<\/p>\n<p>\u00a0<\/p>\n<h3>Profit &amp; loss A\/C<br \/>\n<\/h3>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nSundry expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0950\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Gross profit B\/D\u00a0\u00a0\u00a0\u00a09140<br \/>\nCash stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0150<br \/>\nGoods stolen at cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a040<br \/>\nNet profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08000<\/p>\n<ol>\n<li>9150\n<\/li>\n<\/ol>\n<p>\u00a0<strong>Evaluation questions<\/strong>:<br \/>\n1.\u00a0\u00a0\u00a0\u00a0State four objectives of Branch Accounting.<br \/>\n2.\u00a0\u00a0\u00a0\u00a0State five reasons why branches may decide to keep their accounts rather than the Head office doing so.<\/p>\n<p>\u00a0<strong>GENERAL EVALUATION QUESTIONS<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>State five characteristics of depreciable assets\n<\/div>\n<\/li>\n<li>\n<div>Explain three reasons why an accountant will consider end- of- year adjustments\n<\/div>\n<\/li>\n<li>\n<div>Differentiate between bad debts and provision for bad debts\n<\/div>\n<\/li>\n<li>\n<div>Differentiate between bank statement and bank reconciliation statement\n<\/div>\n<\/li>\n<li>\n<div>State four reasons for making provision for depreciation\n<\/div>\n<\/li>\n<\/ol>\n<p>\u00a0<strong>Reading Assignment<br \/>\n<\/strong>Simplified and Amplified Financial Accounting \u2013 page 466-487<br \/>\nEssential financial Accounting by O.A. Longe and others pages 375-379<\/p>\n<p>\u00a0<strong>Weekend assignment<br \/>\n<\/strong><\/p>\n<ol>\n<li>If the cost of goods is N10,000 and there is a 25% mark-up on it, then the selling price is &#8212;&#8212;&#8212;-(a)N10,000 (b)N10,200 (c)N12,500 (d)N13,500\n<\/li>\n<li>If the cost of an article is N500 the company&#8217;s profit margin is 20% then the selling price is &#8212;&#8212;&#8212;-(a)N6250 (b)5000 (c)72250 (d)6000\n<\/li>\n<li>If the margin allowed by a business is 25% then the business mark-up is &#8212;&#8212;&#8212;-(a)20% (b)30% (c)311% (d)50%\n<\/li>\n<li>If the profit on cost price is 1\/5 then the profit on selling price is &#8212;&#8212;&#8212;-(a)1\/2 (b)1\/3 (c)5% (d)1\/4 (e)1\/6\n<\/li>\n<li>The margin on sales of a trader is 15% therefore the trader&#8217;s mark-up is &#8212;&#8212;&#8212;-(a)12\/7 (b)15\/17 (c)3\/20 (d)3\/17\n<\/li>\n<\/ol>\n<p>\u00a0<strong>THEORY<\/strong><\/p>\n<ol>\n<li>Fill the following gaps\n<\/li>\n<\/ol>\n<p>\u00a0\u00a0\u00a0\u00a0Mark-up\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Margin<br \/>\n\t\tIf\u00a0\u00a0\u00a0\u00a0 i.\u00a0\u00a0\u00a0\u00a010%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0i.\u00a0\u00a0\u00a0\u00a0Then &#8212;&#8212;&#8212;-?<br \/>\nii.\u00a0\u00a0\u00a0\u00a0&#8212;&#8212;&#8212;-?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ii.\u00a0\u00a0\u00a0\u00a0If 30%<br \/>\niii.\u00a0\u00a0\u00a0\u00a03\/7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0iii.\u00a0\u00a0\u00a0\u00a0Then&#8212;&#8212;&#8212;-?<\/p>\n<p>\u00a0<\/p>\n<ol>\n<li>State the main pricing methods in branch accounting.\n<\/li>\n<\/ol>\n<p>\t\t\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0WEEK SEVEN TOPIC: INTRODUCTION TO BRANCH ACCOUNTS CONTENT Meaning of Branch Accounts Division of Branch&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,313],"tags":[],"class_list":["post-4036","post","type-post","status-publish","format-standard","hentry","category-posts","category-second-term-ss3-financial-accounting"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/4036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=4036"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/4036\/revisions"}],"predecessor-version":[{"id":4037,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/4036\/revisions\/4037"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=4036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=4036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=4036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}