Exam 3: Accounting and Financial Management for Branches and Head Offices

Goods are supplied by the head office to dependent branches are at:

Under the stock and debtor system, Branch A/c is treated as ______

Matching concept means

HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to ______

H.O. sent goods to branch at invoice price 50% plus on original price. How many percentage of profit will be on Invoice price?

Stock and debtors system is generally used when goods are sent to the branch at _____

For finding the amount of sundry expenses paid by the branch, the following a/c should be prepared.

When Branch pays expenses for H.O. the following account is debited in the books of the branch _______

If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the petty cash received from HO is Rs 700, then what will be the amount of sundry expenses _____

Which of the following is not the main objective of accounting?

H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch during the year will be ______

Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closing balance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?

Under debtors system which account is prepared by head office to calculate profit or loss of each branch:

H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price. What is the loading element?

Under debtors system depreciation on fixed asset is ________

Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 at invoice price, Rs ______ will be credited to stock reserve a/c.

HO sends goods to branch at invoice price after adding 25% on cost price, so profit would be ___ % of invoice price

The system of keeping accounts generally adopted by small size branches are:

Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts?

If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount of credit sales?