SRI VIDYA MANDIR ARTS & SCIENCE COLLEGE

(AUTONOMOUS)
Katteri – 636 902, Uthangarai, Krishnagiri District
(An Autonomous College Affiliated to Periyar University, Salem)
(Recognized under Status 2(f) & 12(B) of the UGC Act 1956)
Accredited by NAAC with ‘A’ Grade [3.27]

PG and Research Department of Commerce

Continuous Internal Assessment (CIA) I – May 2021
Class : I B.Com Maximum Marks : 75
Course : Financial Accounting - II Date of Examination : 20.05.2021
Course Code: 20UCM2C03 Time : 3 hours

SECTION – A
Choose the correct answer (15 x 1 x = 15 Marks)
1. When Branch pays expenses for H.O. the following account is debited in the books of the
branch–
a) Expenses is debit b) H.O. a/c is debited
c) Branch is debited d) None
2. Under the stock and debtor system, Branch A/c is treated as –
a) Joint a/c b) Nominal a/c
c) Personal a/c d) Real a/c
3. When Branch assets a/c is kept in the books of H.O. H.O. will debit following a/c for its
depreciation-
a) Branch P & L a/c b) Depreciation a/c
c) Branch a/c d) None
4. For finding the amount of sundry expenses paid by the branch, the following a/c should be
prepared.
a) Computer a/c b) Creditors
c) Petty cash a/c d) Debtors
5. Which of the following branches, taking into consideration the scope of authority and
responsibility, prepares its own independent final accounts?
a) Independent Branch b) Foreign Branch
c) Dependent branch d) Independent and Foreign branch both.
6. Goods in transit are shown in the balance sheet at–
a) Head office b) Branch
c) Both d) None of above
7. The adjusting entry for difference between the invoice price and cost price of goods are
shown in-
a) Balance sheet b) P&L a/c
c) Branch adjustment a/c d) None of above
8. Stock and debtors system is generally used when goods are sent to the branch at–
a) Cost price b)Invoice price
c) Both d) None
9. Goods sent by HO but not received by branch before the end of the year, by debiting it to
goods in transit, which account should be credited?
a) Cash a/c b) HO a/c
c) Trading a/c d) Branch a/c
10. The system of keeping accounts generally adopted by small size branches are:
a) Debtors system b) Stock & Debtors system
c) Wholesale branch system d) Final account system
11. Goods are supplied by the head office to dependent branches are at:
a) Cost price b) Invoice price
c) Market price d) Cost or invoice price
12. Branch which does not maintain its own set of books is .
a) Dependent branch b) Independent branch
c) Foreign branch d) Local Branch
13. Dependent branch makes:
a) Cash sales only b) Credit sales only
c) Cash & Credit sales d) Installment sales
14. In case of cash in transit the books of branch account is debited to reconcile the difference.
a) Head office b) Cash in transit
c) Bank d) Branch
15. account is prepared to adjust the loads included in the value of opening
stock and closing stock.
a) Branch stock b) Branch adjustment
c) Stock reserve d) Branch P&L

SECTION – B
Answer Any Three Questions (03 05 = 15 Marks)
14. Define branch and explain the objects maintaining branch account.

15. Z has a branch at Bangalore where goods are sent to branch at cost plus 25%. Branch is
instructed to deposit cash every day in H.O account. All expenses are paid by cheque by the HO
except for petty expenses, which are paid by the branch manager. From the following prepare
branch account in head office books.
Stock on 1.1.2015 Rs.2500; Stock on 31.12.2015 Rs.3000; Debtors 1.1.2015 Rs.1400;
Debtors on 31.12.2015 Rs.1800; Cash sales for the year Rs.10800; Cash remitted to HO
Rs.15000; Credit sales Rs.7000; Furniture purchased by branch Rs.1200; Goods invoiced from
HO Rs.182000, Expenses paid by branch Rs.120 expenses paid branch Rs.1640, Cash remitted
by HO for the purchase of locker Rs.1300.

16. Lucky Ltd opened a branch on 1.1.2015at Palani. The following information is supplied to
you. Prepare branch account.
Goods sent to branch 50,000 Cash sales 20,000
Cash received from debtors 32,000 Credit sales 36,000
Discount allowed 600 Cash sent to branch 7,000
Stock on 31.12.2015 8,000 Debtors on 31.12.2015 3,400

17. Write down the format of in the books of head office.

SECTION – C
Answer Any Five Questions (05 09 = 45 Marks)
18. The Southern Company, Chennai has branch at Coimbatore, goods are invoice to the
Coimbatore branch at selling prices. Being cost plus 25%. The Coimbatore branch keeps its own
sales ledger and transaction all cash received to the head office daily. All expense is paid from
Chennai. From the following details, prepare the profit and loss account of the Coimbatore
branch for the year ended 2010 and also the Coimbatore branch account in the books of the head
office.
Stock 1.1.2010 12,500 Stock 31.12.2010 15,000
Debtors 1.1.2010 7,000 Debtors 31.12.2010 9,000
Rent and rates (paid by HO) 4,000 Sundry expenses (paid by HO) 800
Cash sales 54,000 Credit sales 35,000
Cash received from debtors 33,000 Goods invoice from Coimbatore 91,000
Wages paid from HO 3,400

19. From the following particulars relating to Madurai branch, Prepare branch account in the
books of head office for the year ended 31.12.2014.
Stock 1.1.2014 30,000 Debtors 1.1.2014 12,000
Petty cash1.1.2014 200 Goods sent to branch 50,000
Goods returned to HO 600 Sales at branch cash 30,000
Credit sales 42,000 Sales returns at branch 300
Bad debts written off 300 Branch expenses paid by HO 3,000
Petty cash sent to branch 500 Petty cash 31.12.2014 300
Stock 31.12.2014 12,500
20. From the following particulars relating to Thanjai branch prepare the branch account in the
books of the head office for the year ending 31.12.2012.
Stock 1.1.2012 30,000 Bad debts written off 300
Debtors 1.1.2012 12,000 Discount allowed 100
Petty cash 1.1.2012 200 Branch expense 3,000
Goods sent to branch 50,000 Petty cash sent to branch 500
Goods returned to HO 600 Petty expenses at branch 400
Cash sales 30,000 Furniture purchase by branch 1,000
Sales return at branch 250 Credit sales 42,000

21. Subramanian & Co of Madras sends goods to branch at Tanjore at cost plus 25%. All cash
received by branch I remitted to the Head Office. All expenses are paid from Madras. From the
following particulars, shows how the branch Account will appear in the books of head office.

Stock on 01.01.1989(Invoice Price) 12,500 Stock on 31.12.1989(Invoice Price) 15,000

Debtors 01.01.1989 12,000 Debtors on 31.12.1989 32,500
Goods invoiced from Madras 60,900 Goods returned to head office 2,400
Cash sales 16,000 Cash Received from debtors 29,500
Wages & Salaries 11,000 Rent 3,000
Sundry Expenses 510

22. From the following particulars relating to Madurai Branch, Prepare Branch Account in the
book of Head office for the year ended 31.12.2014
Stock 1.1.2014 40,200 Debtors 1.1.2014 17,000
Petty cash1.1.2014 400 Goods sent to branch 95,000
Goods returned to HO 600 Sales at branch cash 60,000
Credit sales 58,000 Sales returns at branch 600
Bad debts written off 600 Branch expenses paid by HO 3,000
Petty cash sent to branch 500 Petty cash 31.12.2014 300
Stock 31.12.2014 17,500 Salaries 5,000

23. What are the Features of a Dependent Branch?

******************All the Best ******************