Question 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%... ( DU SOL Financial Accounting Exam)

Question: 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 returned 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) ₹ 3,000. 

Debtors at Mumbai: Opening ₹ 10,000, Closing ₹ 11,000 

Cash remitted by Mumbai Branch to HO: ₹ 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.

Answer:  

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