3. OM Ltd. Delhi invoices goods to its Mumbai and Kolkata branch offices at 20% less than the list price which is cost plus 50% with instructions that cash sales are to be made at invoice price and credit sales at list price. Opening Stock at Mumbai at its cost 76,800. Goods Sent to Mumbai (at cost to Delhi) 1,10,000. Cash Sales 74.8% of Net Credit Sales. Goods returmed by Credit Customers to Mumbai 45,000. Goods returned by Mumbai to Delhi 36,000. Loss of Goods by fire (at invoice price) ? 3,000 against which 80% of cost was recovered from the insurance Company. Loss of Goods at Mumbai through normal pilferage (at list price) R 3,000. Debtors at Mumbai: Opening ? 10,000, Closing ? 11,000 Cash remitted by Mumbai Branch to HO: R 1,62,435. Discount Allowed to Debtors 13,365. Goods received by Mumbai till close of the year 1,27,000. Provision is to be made for discount on Debtors at 15% on prompt payments at year end on the basis of year's trend of prompt payments.

3. OM Ltd. Delhi invoices goods to its Mumbai and Kolkata branch offices at 20% less than the list price which is cost plus 50% with instructions that cash sales are to be made at invoice price and credit sales at list price. Opening Stock at Mumbai at its cost 76,800. Goods Sent to Mumbai (at cost to Delhi) 1,10,000. Cash Sales 74.8% of Net Credit Sales. Goods returmed by Credit Customers to Mumbai 45,000. Goods returned by Mumbai to Delhi 36,000. Loss of Goods by fire (at invoice price) ? 3,000 against which 80% of cost was recovered from the insurance Company. Loss of Goods at Mumbai through normal pilferage (at list price) R 3,000. Debtors at Mumbai: Opening ? 10,000, Closing ? 11,000 Cash remitted by Mumbai Branch to HO: R 1,62,435. Discount Allowed to Debtors 13,365. Goods received by Mumbai till close of the year 1,27,000. Provision is to be made for discount on Debtors at 15% on prompt payments at year end on the basis of year's trend of prompt payments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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8
The home office ships merchandise to the branch at 25 percent above cost. At what amount should the Home Office account be credited if merchandise costing P120,000 will be shipped?
Magnum Ltd. has a branch in Agra. Goods are sent to Branch at 25% profit on cost. Following informatlon are available by Head office in Delhi in connection with this 5. Branch. Opening Balances: Rs. Stock (Invoice Value) 20,000 Branch Debtors 10,000 Furniture 10,000 Petty Cash 500 Transactions during the year; Goods sent to Branch 1,20,000 Goods in Transit 10,000 Goods returned by Branch 10,000 Goods returned by branch customer 5,000 Cash sale 65,000 Credit Sales ? Bad Debts 500 Discount allowed 500 Collection from debtors 44,000 Cash sent by Head office for Rent 2,000 Salary 2,500 Petty Cash 1,000 5,500 Closing Balances: Stock 25,000 Branch Debtors 15,000 Furniture 9,000 Petty Cash 400 Prepare: Branch Debtors A/c, Branch Stock A/c, Branch Adjustment A/c and Branch profit and loss A/c.
JC Penney has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? 84.76 days 121.07 days 74.19 days 151.21 days 138.46 days
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The following relates to a single sale of goods made by Spurs in 2023: Selling price P500,000Freight costs 5,000Terms 3/15, n/30Shipping Date December 28, 2023Date goods received by the customer January 3, 2024Date payment is received by Spurs January 5, 2024 Question:10. If the term is FOB shipping point, freight collect, how much net cash did Spurs receive on January 5, 2024? a. P480,000b. P485,000c. P490,000d. P495,000
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