All India Rank holders

AIR-1 AIR-1 AIR-2 AIR-3 AIR-3 AIR-4 AIR-5

Pooja Chhatwani CMA Piyush Gupta CMA Kanhaiya CMA Rohini J CMA Sunaina CMA Deepanjali CMA Taruna Mittal
CMA INTER CMA FINAL CMA FINAL CMA FINAL CMA FINAL CMA FINAL CMA FINAL

AIR-7 AIR-10 AIR-11 AIR-12 AIR-14 AIR-14 AIR-15 AIR-15

CMA Vishal Jain Zainab Sofi Nancy Vikesh CMA Ujjawal Kumar Manoj CMA Aayushi Mittal Saurav Kumar CMA Heramb
CMA FINAL CMA INTER CMA INTER CMA FINAL CMA INTER CMA FINAL CMA INTER CMA FINAL

AIR-17 AIR-18 AIR-21 AIR-22 AIR-22 AIR-22 AIR-23 AIR-25

CMA Pratham CMA Priyanka Rawat Dhruv Rastogi CMA Keval Amitbhai Rohit Bhatt CMA Govind Bisht CMA Priyanshi Jain CMA Bhawna
CMA FINAL CMA FINAL CMA INTER CMA FINAL CA INTER CMA FINAL CMA FINAL CMA FINAL

AIR-26 AIR-30 AIR-30 AIR-32 AIR-33 AIR-34 AIR-35 AIR-35

CMA Rishika Tater Dhruv Lakhotia CMA Parth Maheshwari CMA Adarsh Rameshbhai Chetan Sharma Himshikha Ranawat CMA Aman Verma Vishal
CMA FINAL CMA INTER CMA FINAL CMA FINAL CMA INTER CMA INTER CMA FINAL CMA INTER

AIR-36 AIR-37 AIR-37 AIR-38 AIR-38 AIR-38 AIR-41 AIR-41

CMA Nutan Gupta Mohit CMA Sameer Shrimal Rahul Sagaria Sweta Armaan Ansari Deepak Kumar CMA Shradha Singh
CMA FINAL CMA INTER CMA FINAL CMA INTER CA INTER CMA INTER CMA INTER CMA FINAL

AIR-43 AIR-43 AIR-43 AIR-43 AIR-44 AIR-45 AIR-46 AIR-47

CMA Srishti Abhay Singh Joy Paul CMA Manu Sharma CMA Arman Hassan Kirti CMA Anees Khan CMA Hemant
CMA FINAL CMA INTER CMA INTER CMA FINAL CMA FINAL CMA INTER CMA FINAL CMA FINAL

AIR-47 AIR-47 AIR-47 AIR-49 AIR-49 AIR-49 AIR-49 AIR-50

Chhavi Gupta CMA Aman Saini Garvit CMA Megha CMA Harshit CMA Amaresh Maji Mehek Goyal Ayush Raj
CMA INTER CMA FINAL CMA INTER CMA FINAL CMA FINAL CMA FINAL CMA INTER CMA INTER

Website- www.coceducation.com
 COC Education's Shining Stars

CA Foundation Toppers
365 334
299 321 307 301 300 299 288
288
400 400
Marks 400 400 400 400 400 400
Marks

Noor Singla Disha Varun Manika Mangla Pari Maheshwari Jai Sourav Rohit

288
288 287
285 285
285 285
285 285
285 280
285 280
285 278
400
Marks 400
Marks 400
Marks 400
Marks 400
Marks 400
Marks 400
Marks 400

Ankit Ruman Shubham Nandini Samarth Ayush Raj Sneha Reddy Tripti

277 277 277 275

285 274 274
285 274
285 273
285
400 400 400 400
Marks 400 400
Marks 400
Marks 400
Marks

Anmol Shruti Rishav Harsh Malani Karan Bhumika MD Kaif Svapnil

& Many More...

CA Inter- Accounts Toppers

91 90 87 85 81 80 79 78
100 100 100 100 100 100 100 100

Jai Bhargava Vidhushi Agrawal Rohit Bhatt Garvit Ridhi Disha Jain Harmandeep Soumyajit

78 78 78 77 76 74 74 73
100 100 100 100 100 100 100 100

Dash Gupta Khushi Maheshwari Tushar Tarun Sujan Aryan Charush Kshitiz Shahi Yogesh

73 73 72 69 69 69 68 67
100 100 100 100 100 100 100 100

Ishan Sahriya Niren Sharma Ayush Kumar Dibya Sayak Vishwajit Umang Jaiswal Nikhil

& Many More...

www.coceducation.com
 Our Faculties
Foundation

CA Shivangi CA Raghav Prof. Mayank Prof. Vinit Kumar CA/CMA Santosh Prof. Nitin CA/CMA/CS
Agarwal (PG-Tax Kumar Bhardwaj Nikhil Gupta
Agrawal Goel (MSC Mathematic, Spec.,LLB,UGC-NET) (LLB,M.COM,
(Faculty of (Faculty of MBA) (Faculty of B.Com(h)) (Faculty of Law
(Faculty of
Law and Law and (Faculty of Economics And Financial & Cost (Faculty of Law and and
Communication) Communication) Maths & Stats) Management) Accounting) Communication ) Communication)

Intermediate
CA/ACCA Amarjit CA/CMA Santosh Prof. Vinit Kumar Prof. Nitin CA Raghav Goel CMA Ashutosh
CA Jyoti CMA Sumit Rastogi
CA Vijay CA Satish Jalan
Kumar (PG-Tax Spec., Bhardwaj (Faculty of
Garg (Faculty of Costing, Kaur (Faculty of Costing, Lata
OM/SM,FM & BDA Sarda (Faculty of OMSM, OM/SM,FM & BDA
(Faculty of LLB,UGC-NET) (LLB,M.COM, Business Laws
Financial And (Faculty of
(Faculty of And Management (Faculty of Tally Prime and And Management Corporate
(Faculty of B.Com(h)) And Ethics,
(Faculty of Business
Audit) Accounting) Taxation) Microsoft Excel) Accounting) Accounting) Taxation) Laws And Ethics ) Audit,IDT) Costing & FM)

CA/CS Amit CS Arjun CMA Chander CA/CMA/CS CA Shivangi Prof. Satyesh CMA Vipul CA Sanjay CA/CMA/CS CA Nikunj
Bachhawat Chhabra Dureja Priyanka Agrawal Shah Mundhra Nikhil Gupta
(Faculty of (Faculty of (Faculty of Kumar Goenka
Saxena (Faculty of
Business Laws Business Laws
Costing,FM & BDA
And Management (Faculty of Tax Business Laws (Faculty of (Faculty of (Faculty of (Faculty of (Faculty of DT
And Ethics, Audit) And Ethics) Accounting) & Audit) And Ethics) OM & SM) Taxation) Taxation) Tax & Audit) & IDT)

Final

CMA Sumit CA Satish CA/CMA CA/CMA/CS CA/CMA/CS CA Amit CA Raghav CMA Akshay
Rastogi Santosh Priyanka Nikhil Gupta Popli Goel Sen
Jalan Kumar
(Faculty of Saxena (Faculty of (Corporate (Faculty of (Faculty of
(Faculty of (Faculty of (Faculty of Tax,SPM/BVM And Economic
SCM) SCM-SFM) Accounts) Taxation) & COST) Law) Law & IDT) IDT)

CMA Chander CA/CS Amit CA Vijay CMA Ashutosh

CA Shivangi CA Aditya CA Nikunj CA Sanjay
Dureja Lata
Agrawal Bachhawat Jain Sarda (Faculty of Goenka Mundhra
(Faculty of (Faculty of
(Faculty of Costing and
(Faculty of (Faculty of Costing And (Faculty of (Faculty of
Law) SFM) Law) FM) Direct Tax) SFM) Indirect Tax) Taxation)

8448322142/7303445575/9999631597/7011668629 or Visit- www.coceducation.com

 TEST -8
BRANCH & DEPARTMENTAL ACCOUNTS
CMA INTER GR-1 FINANCIAL ACCOUNTING(P6)
TOTAL MARKS-100 TIME-3 HOURS
Instructions: -
 Section-A is Compulsory and have no option-based Questions.
 In Section-B, Students should attempt 5 Questions out of 6 Questions.
 Suitable assumptions may be made and clearly indicated in the answer.
 Marks are indicated against the respective questions.

SECTION - A

1. Multiple Choice Question: [15 × 2 = 30]

(i) (b) Sales Basis

(ii) (b) Branch Account is debited
(iii) (d) Head Office Purchase Account/Trading Account
(iv) (b) Chain stores
(v) (d) When it is not desirable to disclose the profit earned by HO.
(vi) (c) 10,000
(vii) (d) General Profit and Loss Account
(viii) (c) Gross profit
(ix) (b) Branch stock account
(x) (a) Branch adjustment account
(xi) (c) I & III
(xii) (c) Both (a) and (b).
(xiii) (b) Floor area occupied by each department.
(xiv) (c) Both (a) and (b)
(xv) (c) Accounting Department

CA/CMA SANTOSH KUMAR Phone No. 9999631597/8448322142/7303445575

 SECTION – B
(Answer any five questions out of six questions given. Each question carries 14 Marks)
Solution 2.
MAHINDRA LIMITED
Branch Stock Account
Particulars ₹ Particulars ₹
To Balance b/d 60,000 By Cash (Sales) 75,000
To Goods sent to Branch A/c 18,00,000 By Branch Debtors A/c 15,00,000
By Branch Adjustment A/c 11,250
(Loading of shortage)
By Branch Profit & Loss A/c (Cost 33,750
of shortage)
By Balance c/d 2,40,000
18,60,000 18,60,000

Branch Debtors Account

Particulars ₹ Particulars ₹
To Balance b/d 1,50,000 By Cash A/c 14,40,000
To Branch Stock A/c 15,00,000 By Branch Expenses A/c 36,900
(discount)
By Balance c/d 1,73,100
16,50,000 16,50,000

Branch Expense Account

Particulars ₹ Particulars ₹
To Branch Debtors Account 36,900 By Branch Profit & Loss A/c 4,11,900
To Cash A/c 3,75,000
4,11,900 4,11,900

Branch Adjustment Account

Particulars ₹ Particulars ₹
To Stock Reserve A/c (Closing Stock) 60,000 By Stock Reserve A/c (Opening 15,000
To Branch Stock A/c (Loading of 11,250 Stock)
shortage) By Goods sent to Branch A/c 4,50,000
To Branch P&L A/c (Gross profit) 3,93,750
4,65,000 4,65,000

Branch Profit and Loss Account

Particulars ₹ Particulars ₹
To Branch Expenses A/c 4,11,900 By Branch Adjustment A/c 3,93,750
To Branch stock A/c (cost of shortage) 33,750 By Net Loss transferred to 51,900
General P & L A/c
4,45,650 4,45,650

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

Solution 3 (a).
Calculation of correct Profits
Dept. X. Dept. Y. Dept. Z.
Profit after charging managers' commission 36,000 27,000 18,000
Add back : Managers' commission 4,000 3,000 2,000
40,000 30,000 20,000
Less : Unrealised profit on stock (Working Note) (4,000) (4,500) (2,000)
Profit before Manager's commission 36,000 25,500 18,000
Less : Commission for Department Manager @ 10% (3,600) (2,550) (1,800)
Departmental Profits after manager's commission 32,400 22,950 16,200

Working Note :
Stock lying with
Dept. X. ₹ Dept. Y. ₹ Dept. Z. ₹ Total ₹
Unrealised Profit of - - -
Department X - 1/5×15,000=3,000 1/11×11,000=1,000 4,000
Department Y 0.15×14,000=2,100 - 0.20×12,000=2,400 4,500
Department Z 1/6×6,000=1,000 1/5×15,000=3,000 - 4,000
12,500

Solution 3(b).
Journal entry in the books of Head Office
Date Particulars L.F. Debit ₹ Credit ₹
30th Mumbai Branch Account Dr. 3,000
April, Chennai Branch Account Dr. 70,000
2025 To Delhi Branch Account 15,000
To Kolkata Branch Account 58,000
(Being adjustment entry passed by head
office in respect of inter-branch
transactions for the month of April, 2025)

Working Note:
Inter – Branch transactions
Delhi Mumbai Chennai Kolkata
A. Delhi Branch
(1) Received goods 50,000 (Dr.) 35,000(Cr.) - 15,000(Cr)
(2) Sent goods 45,000 (Cr.) - 25,000 (Dr.) 20,000 (Dr.)
(3) Received Bills receivable 20,000 (Dr.) - 20,000 (Cr.) -
(4) Sent acceptance 35,000 (Cr.) 25,000 (Dr.) 10,000 (Dr.)
B. Mumbai Branch
(5) Received goods 20,000 (Cr.) 35,000 (Dr.) 15,000 (Cr.)
(6) Sent cash 15,000 (Dr.) 22,000 (Cr.) 7,000 (Dr.)
C. Chennai Branch

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

 (7) Received goods - - 30,000 (Dr.) 30,000 (Cr.)
(8) Sent cash and acceptances - - 30,000 (Cr.) 30,000 (Dr.)
D. Kolkata Branch
(9) Sent goods - - 35,000 (Dr.) 35,000 (Cr.)
(10) Sent cash - - 15,000 (Dr.) 15,000 (Cr.)
(11) Sent acceptances - - 15,000 (Dr.) 15,000(Cr).
15,000 (Cr.) 3,000 (Dr.) 70,000 (Dr.) 58,000 (Cr.)

Solution 4.
Borivali Branch Stock Account
Date Particulars ₹ Date Particulars ₹
2024 2025 By Cash Sales 43,400
Apr 1 To Balance b/d 39,750 Mar 31 By Branch Debtor A/c 40,420
2025 To Goods Sent to Branch 102,900 By Goods Sent to Branch A/c 1,680
Mar 31 Goods in transit (+) 1,540 104,440 (Returns)
By Branch Expenses A/c 1,050
(Reduction in selling price)
By Goods Sent to Branch A/c 1,540
(Goods in Transit)
By Branch Adjustment A/c 2,500
(Shortage) (bal. fig.)
By Balance c/d 53,600
1,44,190 1,44,190

Borivli Branch Debtors A/c

Date Particulars ₹ Date Particulars ₹
2024 2025 By Branch Expenses (Bad 430
Apr 1 To Balance b/d 5,820 Mar 31 debts)
To Branch Stock Account (Credit 40,420 By Cash 38,260
Sales) By Branch Expenses (Discount) 1,160
By Balance c/d (bal. fig.) 6,930
46,240 46,240
Borivli Branch Expenses A/c
Date Particulars ₹ Date Particulars ₹
2025 To Branch Debtors A/c: 2025 By Branch Adjustment A/c 2,640
March 31 Bad. Debts 430 March
Discount 1,160 31
To Branch Stock Account 1,050
(Reduction in Sale Price)
2,640 2,640

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

 Goods Sent to Borivli Branch A/c
Date Particulars ₹ Date Particulars ₹
2025 To Branch Stock A/c (Goods in 1,540 2025 By Branch Stock A/c 1,04,440
March 31 Transit) Mar 31
To Branch Stock A/c (Returns) 1,680
To Branch Adjustment A/c 33,740
To Purchases A/c (bal. fig.) 67,480
1,04,440 1,04,440

Borivli Branch Adjustment A/c

Date Particulars ₹ Date Particulars ₹
2025 To Branch Stock Reserve A/c 18,380 2025 By Branch Stock ReserveA/c 13,250
March 31 (Closing stock) Note: 1(e+f) Mar 31 (Opening Stock) Note:1(d)
To Branch Stock A/c (Shortage 833 To Goods Sent to Branch A/c 33,740
Loading) Note:2 (c) Note:1(a)
To Gross Profit 27,777
46,990 46,990
To Branch Expenses A/c 2,640 By Gross Profit 27,777
To Branch Stock A/c 1,667
(shortage cost) Note: 2(c)
To Net Profit 23,470
27,777 27,777

Notes:
(1) Loading (50% on CP = 1/3rd of IP) Invoice 1/3rd
Price
(a) Goods sent to Branch 102,900 34,300
Goods returned (1,680) (560)
101,220 33,740
(b) Goods Returned by Branch 8,346 1,391
(c) Shortage 2,500 833
(d) Stock -Opening 39,750 13,250
(e) Closing 53,600 17,867
(f) Goods -in-Transit 1,540 513
55,140 18,380
(2) Assumption: Shortage is of Normal nature (nothing abnormal)

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

Solution 5 (a).
In the books of M/s. Gama
Delta Departmental Trading and Profit and Loss Account for the year ended 31st March, 2025
Particulars Dept. X Dept. Y Dept. Z Total Particulars Dept. X Dept. Y Dept. Z Total
To Stock (Opening) 18,000 12,000 10,000 40,000 By Sales 90,000 67,500 45,000 2,02,500
To Purchases 66,000 44,000 22,000 1,32,000 By Stock (closing) 22,500 8,750 10,500 41,750
To Carriage Inwards 750 500 250 1,500
To Gross Profit c/d 27,750 19,750 23,250 70,750
(b.f.)
1,12,500 76,250 55,500 2,44,250 1,12,500 76,250 55,500 2,44,250
To Carriage outwards 1,200 900 600 2,700 By Gross Profit b/d 27,750 19,750 23,250 70,750
To Electricity 1,500 1,000 500 3,000 By Discount Received 900 600 300 1,800
To Salaries 10,000 8,000 6,000 24,000
To Advertisement 1,200 900 600 2,700
To Discount Allowed 1,000 750 500 2,250
To Rent, Rates and 3,000 2,500 2,000 7,500
taxes
To Depreciation 400 400 200 1,000
To Provision for Bad 375 250 250 875
debts 5% of debtors
To Labour Welfare 1,000 800 600 2,400
Expenses
To Net Profit (b.f) 8,975 4,850 12,300 26,125
28,650 20,350 23,550 72,550 28,650 20,350 23,550 72,550

Working Note:
Basis of Allocation of Expenses
Carriage inwards Purchases (3:2:1)
Carriage outwards Turnover (4:3:2)
Salaries No. of Employees (5:4:3)
Advertisement Turnover (4:3:2)
Discount allowed Turnover (4:3:2)
Discount received Purchases (3:2:1)
Rent, Rates and Taxes Floor Space Occupied (6:5:4)
Depreciation on furniture Value of furniture (2:2:1)
Labour welfare expenses No. of Employees (5:4:3)
Electricity expenses Units consumed (3:2:1)
Provision for bad debts Debtors balances (3:2:2)

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

Solution 5(b).
Items Basis of Allocation
(i) Insurarance of Building Floor area of each department
(ii) Discount and bad debts Sales of each department
(iii) Discount received Purchases of each department
(iv) Repairs and maintenance of capital assets Assets value of each department
(v) Advertisement expenses Sales of each department
(vi) Labour welfare expenses No. of employees in each dept.
(vii) PF/ESI contributions Wages and Salaries of each department
(viii) Carriage inward Purchases of each department

Solution 6(a). Calculation of unrealised profit of each department and total unrealised profit
Dept. A ₹ Dept. B ₹ Dept. C ₹ Total ₹
Transfer from - 45,000 × 50/150= 42,000 × 20/120= 22,000
Department A 15,000 7,000
Transfer from 40,000 ×.25 =10,000 - 72,000 × .15=10,800 20,800
Department B
Transfer from 39,000 × 30/130= 42,000 × 40/140= - 21,000
Department C 9,000 12,000
63,800

Solution 6(b).
Particulars ₹ ₹ Particulars ₹ ₹
To Balance B/D By Stock Reserve A/c (load on 2,200
- Stock 11,000 Op. stock) (11000 * 25/125)
- Debtors 1,700 By Bank A/c
- Petty cash 100 12,800 - Cash sales 2,650
To Goods sent to branch A/c 20,000 - Collection from debtors 21,000 23,650
(Goods sent to branch) (Cash remitted by branch)
To Bank A/c By Goods sent to branch A/c 400
- Rent 600 (goods returned to H.O)
- Wages 200 By Goods sent to branch A/c 4,000
- Salary & Exp. 900 1,700 (load on goods sent to branch)
(Cash sent to branch) (20000 * 25/125)
To Goods sent to branch A/c 80 By Balance C/D
(load on goods returned to H.O.) - Stock 13,000
(400 * 25/125) - Debtors 2,000
To General P/L A/c (Branch 8,170 - Petty cash 100 15,100
profit transfer)
To Stock Reserve A/c (load on Cl. 2,600
stock) (13,000 * 25/125)
45,350 45,350

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

 Memorandum Branch Debtors Account
Particulars ₹ Particulars ₹
To Balance B/D 1,700 By Bank A/c (collection from debtors) 21,000
To Sales A/c (Credit sales) (Balancing figure) 22,350 By Bad Debts A/c 300
By Return in ward A/c 500
By Allowance A/c 250
By Balance C/D 2000
24,050 24,050

Answer 7(a):
Branches are classified as two-way,
(i) Inland Branch,
(ii) Foreign Branch

(i) Inland Branches:

 Dependent Branches: Branches in respect of which the whole of the accounting records are kept at head office.
 Independent Branches: As the name indicates such branches maintain independent accounting records.

(ii) Foreign Branches: Branches which are located in a foreign country other than the country in which the company is
incorporated they maintain independent and complete record of business.

Methods of accounting are:

 Final Accounts method
 At wholesale price
 At Cost Price/At Invoice Price
 Debtors method;
 Stock and Debtors method; and
 Cash Basis System.

Answer 7(b):
Basis of allocation of common expenditure among different departments:
At the time of preparing department accounts, expenses should be distributed among the different departments on the
basis of the following principles:
1. Expenses incurred specially for each department are charged directly to it. For example, insurance charges of stock
held by a department.

2. The expenses which are not capable of correct measurement are dealt in the following ways:
(i) Expenses incurred on selling.are charged on the basis of sales for e.g. discount, bad debts. selling commission etc.
(ii) Administrative and other expenses such as salaries of managers, directors, common advertisement expenses,
depreciation on assets etc. are allocated equally among all the caepartmerts that have benefitted thereby. Alternatively,
no allocation may be made and such expenses may be charged to the combined profit and loss account.

3. Common expenses, the advantages of which is shared by all the departments and which are competent enough of
precise allocation (e.g. rent, lighting expenses etc.) are distributed among the departments related on some particular

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

basis which are considered suitable for the circumstances. Rent are charged to different departments as per the floor
area occupied by each department. Lighting and heating expenses are distributed on the basis of consumption of energy
by every department and so on.

Solution 7 (c).
 Branch accounting and departmental accounting are both bookkeeping systems that show the results of trading
for different parts of a business:
Branch accounting
 Shows the results of trading for each branch within a business structure.
 The purpose of branch accounting is to determine the profitability of branches, the company's future expansion,
and the branch's needs for cash, stock, and other financial instruments.
 Branch accounting involves keeping separate accounts for each branch or operating location of an organization.
Departmental accounting
 Shows the results of trading for each department within a business.
 The purpose of departmental accounting is to evaluate performance and efficiency, and to determine the overall
growth potential between departments.
 Departmental accounting involves comparing results with previous periods, computing gross profits, identifying
non-profitable departments, and determining manager commissions.

CA/CMA Santosh Kumar Phone No. 9999631597/8448322142/7303445575

Key Features Of Coc's Classes

Studio Unlimited Views

Recorded
Classes

Academic
Mock
Instructors
Test
Paper

Daily Last Year

Doubt Question
Session Practice

www.coceducation.com