Prepare the Branch Inventory Account and Branch Adjustment Account for the year ended 31 December 2021.

April 12, 2026Accounting

ScanSolve AI Answer

April 12, 2026

Answer

Cost Price + 40% of Cost Price = 1.4 $\times$ Cost Price.

Here are the complete entries for the required accounts:

The loading on goods is 40% on cost. This means Selling Price = Cost Price + 40% of Cost Price = 1.4 $\times$ Cost Price. The loading percentage on selling price is $\frac{40}{140} = \frac{2}{7}$ .

4.1 Branch Inventory Account This account records the movement of inventory at selling price.

\begin{array}{|l|r|l|r|} \hline Debit & R & Credit & R \\ \hline Balance b/d (Opening Inventory) & 115\,92

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Quick Answer

The loading on goods is 40% on cost. This means Selling Price = Cost Price + 40% of Cost Price = 1.4 × Cost Price.

Asked on April 12, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

ScanSolve AI AnswerAnswered on April 12, 2026

Here are the complete entries for the required accounts: The loading on goods is 40% on cost. This means Selling Price = Cost Price + 40% of Cost Price = 1.4 × Cost Price. The loading percentage on selling price is (40)/(140) = (2)/(7). 4.1 Branch Inventory Account This account records the movement of inventory at selling price. |l|r|l|r| Debit & R & Credit & R \\ Balance b/d (Opening Inventory) & 115\,92