Home Ltd is incorporated in the UK and rents mobile homes to holidaymakers in this country and in Carea. The company has a head office in London and a branch in Carea where the local currency is ‘Mics’. The following balances are extracted from the books of the head office and its ‘self-accounting’ branch at 31 December 2013.

Head Office Branch

: £ Mics Debit balances Non-current assets at cost 450,000 900,000 Accounts receivable and cash 17,600 36,000 Operating costs 103,700 225,000 Branch current account 42,600 613,900 1,161,000 Credit balances Share capital 200,000 -

Retained profit, 1 January 2013 ' 110,800 -

Sales revenue 186,300 480,000 Accounts payable 9,700 25,000 Head office current account - 420,000 Accumulated depreciation 107,100 236,000 613,900 1,161,000 The following information is provided regarding exchange rates, some of which is relevant.
The non-current assets of the branch were acquired when there were 8 Mics to the £. Exchange rates ruling during 2013 were:
Mics to the £
1 January 6 Average 5 31 December 4 There are no cash or goods in transit between head office and branch at the year end.
Required:
The final accounts of Home Ltd for 2013. The accounts should be expressed in fs sterling and, for this purpose, the conversion of Mics should be made in accordance with IAS 21 The effects of changes in foreign exchange rates.
(Institute of Chartered Secretaries and Administrators)