OTL Ltd commenced business on 1 January 19X0. The head office is in London and there is a branch in Highland. The currency unit of Highland is the Crown.

The following are the trial balances of the head office and the Highland branch as at 31 December 19X0:

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Head Office Highland Branch Crowns Crowns Branch account 65,280 Balances at bank 10,560 66,000 Creditors 21,120 92,400. Debtors 18,480 158,400 Fixed assets (purchased 1 January 19X0) 39,600 145,200 Head office account Profit and loss account (net profit for year) 316,800 52,800 79,200 Issued share capital Stocks 86,400 26,400 118,800 160,320 160,320 488,400 488,400 The trial balance of the head office was prepared before any entries had been made in respect of any profits or losses of the branch. Remittance from head office to branch and from branch to head office were recorded in the books at the actual amounts paid and received.