ABC Ltd. invoices goods to its independent branch A at a profit of 25% on cost. While finalisation of books, it came into notice that goods worth selling price of Rs. 10,000 was lost by theft. Select the appropriate accounting entry to record the transaction in branch books.
1
| Particular | Amount | Amount |
|
Loss by Theft Dr. To Branch Stock Account |
10,000 |
10,000 |
2
No entry required in Branch accounts
3
| Particular | Amount | Amount |
|
Loss by theft a/c Dr. Branch adjustment a/c Dr. T o Branch stock a/c |
8,000 2,000
|
10,000 |
4
| Particular | Amount | Amount |
|
Loss by Theft Dr. Branch adjustment account Dr. To Branch Stock Account |
7,500 2,500 |
10,000 |