{"id":4038,"date":"2023-10-06T09:12:29","date_gmt":"2023-10-06T09:12:29","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=4038"},"modified":"2023-10-06T09:13:34","modified_gmt":"2023-10-06T09:13:34","slug":"week-8-and-9-ss3-second-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-8-and-9-ss3-second-term-financial-accounting-notes\/","title":{"rendered":"Week 8 and 9 &#8211; SS3 Second Term Financial Accounting Notes"},"content":{"rendered":"<p>\u00a0<strong>Week EIGHT AND NINE<br \/>\n<\/strong><strong>Topic:  PREPARATION OF BRANCH ACCOUNT<br \/>\n<\/strong><strong>Content<\/strong><\/p>\n<ul>\n<li>Branch Adjustment Method\n<\/li>\n<li>Accounting Entries\n<\/li>\n<li>Formats and Illustration\n<\/li>\n<li>Where branches keep separate Accounts\n<\/li>\n<\/ul>\n<p>\u00a0<strong>Branch Adjustment Method of Branch Accounting<br \/>\n<\/strong>Unlike the memorandum or double column method, under this method, the profit loading will be taken to a separate A\/C called &#8220;Branch adjustment A\/C&#8221;. Under this method the following are the main A\/C that will be prepared:-<\/p>\n<ol>\n<li>Branch stock A\/C \u2013 at invoice price\n<\/li>\n<li>Branch stock adjustment A\/C showing profit loading\n<\/li>\n<li>Goods sent to branch A\/C \u2013 based on cost price\n<\/li>\n<li>Debtors A\/C (where goods are sold or credit)\n<\/li>\n<li>Branch P &amp; L A\/C<strong><br \/>\n\t\t\t\t<\/strong><\/li>\n<\/ol>\n<p>\u00a0<strong>Accounting Entries<br \/>\n<\/strong><\/p>\n<ol>\n<li>When goods are sent to branch Dr. Branch stock A\/C at invoice price Cr. Goods sent to branch A\/C (at cost)\n<\/li>\n<li>When there are sales \u2013 cash or credit Dr. Cash A\/C with cash sales Dr. Debtors A\/C with credit sales Cr branch stock A\/C with cash or credit sales.\n<\/li>\n<li>\n<div>Stock at start.\n<\/div>\n<p>Dr. branch stock A\/C \u2013 (with invoice price) Cr. Branch stock adjust A\/C (profit loading)\n<\/li>\n<li>\n<div>Stock at close\n<\/div>\n<p>Dr. Branch stock adjust A\/C (profit loading)<br \/>\nCr. Branch stock A\/C with invoice price\n<\/li>\n<li>\n<div>Returns to head office.\n<\/div>\n<p>Cr. Branch stock A\/C at invoice price<br \/>\nDr. Goods sent to branch A\/C at cost price<br \/>\nDr. Branch stock adjustment A\/C with profit loading\n<\/li>\n<li>\n<div>Transfer to other branch\n<\/div>\n<p>Cr. Branch stock A\/C at invoice price<br \/>\nDr. Goods sent to branch A\/C at cost price<br \/>\nDr. branch stock adjustment A\/C with profit loading\n<\/li>\n<li>\n<div>Allowances of selling price or reduction in selling price\n<\/div>\n<p>Dr. branch stock adjustment A\/C (total allowance )<br \/>\nCr. Branch stock A\/C (total allowance)\n<\/li>\n<li>\n<div>Goods in transit\n<\/div>\n<p>Dr. branch stock adjustment A\/C (with profit loading)<br \/>\nCr. Branch stock A\/C (with invoice price)\n<\/li>\n<li>\n<div>Goods lost in transit\n<\/div>\n<p>Dr. Branch stock adjustment A\/C (with profit loading)<br \/>\nDr. Goods lost in transit A\/C (at cost price and write it off to P &amp; L A\/C)<br \/>\nCr. Branch stock A\/C (at invoice price)\n<\/li>\n<li>\n<div>Goods stolen or deficiencies\n<\/div>\n<p>Cr. Branch stock A\/C (invoice price)<br \/>\nDr. Branch stock adjustment A\/C (profit loading)<br \/>\nDr. Goods stolen A\/C (with cost price)\n<\/li>\n<li>\n<div>Cash Stolen\n<\/div>\n<p>Cr. Branch stock A\/C (Total amount)<br \/>\nDr. Defalcation A\/C (total amount) to be written off to P &amp; L A\/C\n<\/li>\n<li>\n<div>Goods returned by customers to head office\n<\/div>\n<p>Cr. Debtors A\/C (invoice price)<br \/>\nDr. goods sent to branch A\/C (cost price)<br \/>\nDr. Branch stock adjustment A\/C (profit loading)\n<\/li>\n<li>Balance of adjustment A\/C will be transferred to branch profit and loss A\/C\n<\/li>\n<li>The goods sent branch A\/C will be closed by transferring the balance to H.O. trading A\/C. Formats\n<\/li>\n<\/ol>\n<p>\u00a0<strong>Branch Stock Account (invoice price)<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\u00a0\u00a0\u00a0\u00a0\u00a0\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\u00a0goods transferred to another branch\u00a0\u00a0\u00a0\u00a0x<br \/>\nGoods sent to branch\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0cash sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\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\u00a0\u00a0\u00a0\u00a0\u00a0Credit sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\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\u00a0\u00a0\u00a0\u00a0\u00a0Expenses paid out of takings\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\u00a0Reducting in selling price\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\u00a0\u00a0\u00a0\u00a0\u00a0Goods in transit\u00a0\u00a0\u00a0\u00a0\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\u00a0\u00a0\u00a0\u00a0\u00a0Returns to H.O.\u00a0\u00a0\u00a0\u00a0\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\u00a0\u00a0\u00a0\u00a0\u00a0Cash stolen (pilterage)\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\u00a0\u00a0\u00a0\u00a0\u00a0Normal loss\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\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\u00a0\u00a0\u00a0\u00a0\u00a0Cash in hand \u00a0\u00a0\u00a0\u00a0\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\u00a0\u00a0\u00a0\u00a0\u00a0Bal c\/d stock at close\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_Week8and91.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and92.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0xx\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\u00a0xx<\/p>\n<p>\u00a0Goods sent to Branch A\/C (cost price)<br \/>\nReturn to H.O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0Branch stock A\/C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nTransfer to other branch\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0<br \/>\nBal C\/D transp. To H.O\u00a0\u00a0\u00a0\u00a0<br \/>\nTrading A\/C\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_Week8and93.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and94.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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<\/p>\n<p>\u00a0<br \/>\n\u00a0<strong>Branch stock adj. or branch mark-up Account profit loading<br \/>\n<\/strong><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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\n<\/strong>Profit on return to H. O\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Profit on opening stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nProfit on stock at close\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0profit on goods sent to branch\u00a0\u00a0\u00a0\u00a0x<br \/>\nProfit on goods returned<br \/>\nBy customers to H.O\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\nProfit on goods in transit\u00a0\u00a0\u00a0\u00a0x<br \/>\nNormal loss (selling price)\u00a0\u00a0\u00a0\u00a0x<br \/>\nProfit on goods stolen\u00a0\u00a0\u00a0\u00a0x<br \/>\nProfit on return to other<br \/>\nBranch\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nReduction in selling price\u00a0\u00a0\u00a0\u00a0x<br \/>\nGP to branch &amp; P&amp;L A\/C<br \/>\nc\/d\u00a0\u00a0\u00a0\u00a0\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_Week8and95.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and96.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0xx\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\u00a0xx<\/p>\n<p>\u00a0<br \/>\n\u00a0<strong>Branch P &amp; L A\/C<br \/>\n<\/strong><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>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\u00a0N<br \/>\nCost of goods stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Branch stock Adj A\/C b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nSundry expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\nCost of goods lost in transit\u00a0\u00a0\u00a0\u00a0x<br \/>\nCost stolen\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0x<br \/>\nNet profit c\/d\u00a0\u00a0\u00a0\u00a0\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_Week8and97.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and98.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0xx\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\u00a0xx<\/p>\n<p>\u00a0<strong>Evaluation questions<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0What are the entries involved in selling goods on credit by a branch?<br \/>\n2.\u00a0\u00a0\u00a0\u00a0What is the purpose of preparing branch stock accounts?<\/p>\n<p>\u00a0<strong>Illustration<br \/>\n<\/strong>Suzuki Ltd has a head office in Lagos and a branch in Ibadan. All goods are purchased by the head office and sent to Ibadan at cost plus mark-up of 1\/3 of the selling price. During the year to 31\/12\/05 the following transaction took place at Ibadan.<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\u00a0N<br \/>\nGoods received from Lagos\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0360,000<br \/>\nGoods returned to Lagos\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03360<br \/>\nBad debt\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01192<br \/>\nCash received from debtors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0137248<br \/>\nCash discount given\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03616<br \/>\nCash sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0201600<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\u00a0144,000<\/p>\n<p>\u00a0The following additional information is relevant<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01\/1\/05\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a031\/12\/05<br \/>\n\u00a0\u00a0\u00a0\u00a0\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\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\nStock in hand at selling price\u00a0\u00a0\u00a0\u00a032160\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a042000<br \/>\nDebtors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a013216\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a015160<\/p>\n<p>\u00a0You are required to prepare<\/p>\n<ol>\n<li>Branch stock A\/C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\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\n<\/li>\n<\/ol>\n<p>Solution:<br \/>\n<strong>Suzuki Ltd<br \/>\n<\/strong>Branch stock A\/C (invoice price)<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\u00a0N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\na.\u00a0\u00a0\u00a0\u00a0balance b\/f\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a032160\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0cash sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0201600<br \/>\n\u00a0\u00a0\u00a0\u00a0Goods sent to branch\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0branch debtors<br \/>\n\u00a0\u00a0\u00a0\u00a0At cost (2\/3 x 360,000)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0240,000\u00a0\u00a0\u00a0\u00a0-credit sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0144,000<br \/>\n\u00a0\u00a0\u00a0\u00a0Branch stock adj.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0goods return<br \/>\n\u00a0\u00a0\u00a0\u00a0Profit loading (1\/3 x 360,000)\u00a0\u00a0\u00a0\u00a0120,000\u00a0\u00a0\u00a0\u00a0to H.O.<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\u00a0\u00a0\u00a0\u00a0Cost \u2013 (2\/3 x 3360)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,240<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\u00a0\u00a0\u00a0\u00a0Branch stock\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\u00a0\u00a0\u00a0\u00a0\u00a0Adjust-profit<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\u00a0\u00a0\u00a0\u00a0Loading (1\/3&#215;3360)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,120<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\u00a0\u00a0\u00a0\u00a0Branch stock<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\u00a0\u00a0\u00a0\u00a0(The difference)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,200<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\u00a0\u00a0\u00a0\u00a0bal (c\/d stock<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and99.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and910.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\u00a0\u00a0\u00a0\u00a0\u00a0at close \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04,200<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\u00a039216\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a039216<br \/>\nb.\u00a0\u00a0\u00a0\u00a0       Goods sent to branch A\/C (cost price)\u00a0\u00a0\u00a0\u00a0<br \/>\nN\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Branch stock<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Goods returned to H.O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A\/C (2\/3&#215;360,000)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0240,000<br \/>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cost (2\/3&#215;3360)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02240<br \/>\nTransferred to<br \/>\nH.O. trading A\/C<br \/>\n(Balancing figure)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0237,760\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and911.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and912.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0240,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0240,000<\/p>\n<p>\u00a0c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Branch stock adjustment A\/C (profit loading)<br \/>\n<\/strong><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>\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\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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0bal b\/f (1\/3&#215;32,160\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010,720<br \/>\nLess in stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01200\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0branch stock A\/C\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0120,000<br \/>\nReturns to H.O\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(profit on G.S.B<br \/>\n(profit on it 1\/3&#215;3360\u00a0\u00a0\u00a0\u00a01120\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(1\/3&#215;360,000)<br \/>\nProfit on closing<br \/>\nStock (1\/3&#215;42000) c\/d\u00a0\u00a0\u00a0\u00a014,000<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and913.png\" alt=\"\"\/>Branch P&amp;L A\/C GP c\/d\u00a0\u00a0\u00a0\u00a0114,400<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and914.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0130720\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\u00a0130720<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\u00a0Bal b\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a014000<\/p>\n<p>\u00a0d.\u00a0\u00a0\u00a0\u00a0                             <strong>Branch debtors A\/C<br \/>\n<\/strong><strong>\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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N<br \/>\n<\/strong>\u00a0\u00a0\u00a0\u00a0Bal b\/f\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a013216\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0cash received from debtors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0137248<br \/>\n\u00a0\u00a0\u00a0\u00a0Credit sales\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0144,000\u00a0\u00a0\u00a0\u00a0Discount allowed\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03616<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\u00a0Bad debt\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01192<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\u00a0Bal c\/d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a015,160<br \/>\n<img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and915.png\" alt=\"\"\/><img decoding=\"async\" align=\"left\" src=\"https:\/\/ecolebooks.com\/nigeria\/wp-content\/uploads\/9jalessonsimages\/100623_0912_Week8and916.png\" alt=\"\"\/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0157216\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0157216<br \/>\n\u00a0\u00a0\u00a0\u00a0Bal b\/d \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a015160\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n<p>\u00a0<strong>Evaluation questions<br \/>\n<\/strong>1.\u00a0\u00a0\u00a0\u00a0Explain the following pricing methods used in preparing branch accounts<br \/>\n\u00a0\u00a0\u00a0\u00a0(a)   cost price       (b) cost plus a percentage       (c) selling price<br \/>\n2.\u00a0\u00a0\u00a0\u00a0List any five items that may feature in the Branch stock Adjustment Account.<\/p>\n<p>\u00a0<strong>GENERAL EVALUATION QUESTIONS<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>List five source documents used in preparing the Cash Book\n<\/div>\n<\/li>\n<li>\n<div>State five  factors to be considered in determining the depreciation charge for a fixed asset\n<\/div>\n<\/li>\n<li>\n<div>State five differences between capital expenditure and revenue expenditure\n<\/div>\n<\/li>\n<li>\n<div>State three features of each of the following (a) cash book (b) trading account (c) profit and loss account\n<\/div>\n<\/li>\n<li>\n<div>Differentiate between prime costs and overhead costs\n<\/div>\n<\/li>\n<\/ol>\n<p>\u00a0<strong>Reading assignment<br \/>\n<\/strong>Essential Financial Accounting O. A. Longe, Pages 379-383<\/p>\n<p>\u00a0<strong>Weekend assignment<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>Branch stock A\/C is prepared to show:\n<\/div>\n<ol>\n<li>cost price of goods sent to branch\n<\/li>\n<li>Gross profit in goods sent to branch\n<\/li>\n<li>Invoice price of goods sent to branches\n<\/li>\n<li>None of the above\n<\/li>\n<\/ol>\n<\/li>\n<li>\n<div>In branch accounting, the entries for bad debt written off are:\n<\/div>\n<ol>\n<li>Dr. Branch stock A\/C Cr. Debtors A\/C\n<\/li>\n<li>Cr. Bank A\/C Dr. debtors A\/C\n<\/li>\n<li>Cr. Debtors A\/C, Dr. branch P&amp;L Mc to branch A\/C\n<\/li>\n<\/ol>\n<\/li>\n<li>\n<div>If the margin of a trader is 30% than the mark-up of the trader is\n<\/div>\n<p>(a)25% (b)33% (c)40% (d)43%\n<\/li>\n<li>The balancing figure in the goods sent to branch A\/C is (a)transfer to branch debtors A\/C (b)credit to branch stock A\/C (c)transfer to branch P&amp;L A\/C (d)transfer to head office trading A\/C\n<\/li>\n<li>\n<div>A branch sold goods on credit for N5000. The accounting entries are debt branch debtors A\/C N5000 and credit.\n<\/div>\n<p>(a) goods sent to branch A\/C N5000 (b)branch stock adjustment A\/C N5000 (c)branch stock A\/C N5000  (d)branch profit &amp; loss A\/C N5000\n<\/li>\n<\/ol>\n<p>\u00a0<strong>Theory<br \/>\n<\/strong><\/p>\n<ol>\n<li>\n<div>What purpose does each of the following serve?\n<\/div>\n<ol>\n<li>Branch stock A\/C\n<\/li>\n<li>Branch stock adjustment A\/C\n<\/li>\n<li>Goods sent to branch A\/C\n<\/li>\n<\/ol>\n<\/li>\n<li>Show a comprehensive format of a branch stock A\/C\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0Week EIGHT AND NINE Topic: PREPARATION OF BRANCH ACCOUNT Content Branch Adjustment Method Accounting Entries&#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-4038","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\/4038","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=4038"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/4038\/revisions"}],"predecessor-version":[{"id":4039,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/4038\/revisions\/4039"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=4038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=4038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=4038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}