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Zorluk: OrtaAccounting for Dependent Branches at Cost Price

Abeokuta Head Office operates a dependent branch in Sagamu, supplying all goods at cost price. On 1 January 2025, the Branch Debtors Account had an opening balance of ₦15,000\text{₦}15,000. During the year ended 31 December 2025, credit sales recorded by the branch were ₦68,000\text{₦}68,000. Cash collected from debtors and remitted to the Head Office totaled ��54,000\text{��}54,000. Additional adjustments revealed discounts allowed to debtors of ₦2,000\text{₦}2,000, bad debts written off of ₦1,000\text{₦}1,000, and returns from debtors to the branch of ₦3,000\text{₦}3,000. What is the closing balance of the Branch Debtors Account as of 31 December 2025 in Nigerian Naira (₦\text{₦})?

Cevap: 23000 ₦

Cevap

The closing balance of the Branch Debtors Account as of 31 December 2025 is ₦23,000\text{₦}23,000.
The Branch Debtors Account is debited with opening debtor balances and credit sales, making the total debit side ₦83,000\text{₦}83,000. It is credited with all items that reduce debts owed by customers, including cash received (₦54,000\text{₦}54,000), discounts allowed (₦2,000\text{₦}2,000), bad debts written off (₦1,000\text{₦}1,000), and goods returned by debtors (₦3,000\text{₦}3,000), totaling ₦60,000\text{₦}60,000 in credits. Subtracting total credits from total debits leaves a closing balance of ₦23,000\text{₦}23,000.

Adım Adım Çözüm

1
Calculate the total debits to the Branch Debtors Account
Total Debits=₦15,000 (Opening Balance)+₦68,000 (Credit Sales)=₦83,000\text{Total Debits} = \text{₦}15,000 \text{ (Opening Balance)} + \text{₦}68,000 \text{ (Credit Sales)} = \text{₦}83,000
Debit entries increase the balance owed by branch trade debtors.
2
Calculate the total credits to the Branch Debtors Account
Total Credits=₦54,000 (Cash Received)+₦2,000 (Discounts)+₦1,000 (Bad Debts)+₦3,000 (Returns)=₦60,000\text{Total Credits} = \text{₦}54,000 \text{ (Cash Received)} + \text{₦}2,000 \text{ (Discounts)} + \text{₦}1,000 \text{ (Bad Debts)} + \text{₦}3,000 \text{ (Returns)} = \text{₦}60,000
Credit entries reduce the balance owed by branch trade debtors through payments, allowances, irrecoverable amounts, and returned goods.
3
Determine the ending balance carried down
Closing Balance=₦83,000−₦60,000=₦23,000\text{Closing Balance} = \text{₦}83,000 - \text{₦}60,000 = \text{₦}23,000
The closing balance represents the net remaining amount due from branch debtors at the financial year end.

Anahtar Kavram

Branch Debtors Account Ledger Entry Rules for Dependent Branches
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Konular

Accounting for Dependent Branches at Cost Price

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