50.000 50.000 Credit balance in Head Office Account before this transfer will be 15,000 credit. Note : Furniture A/c is maintained in Head office books; it is not a part of either opening or closing balance. Illustration 14 Ring Bell Ltd. Delhi has a Branch at Bombay where a separate set of books is used. The following is the trial balance extracted on 31st December, 2012. Head Office Trial Balance 56 7 Share Capital (Authorised: 10,000 Equity Shares of 100 each): Issued: 8,000 Equity Shares Profit & Loss Account - 1-1-2012 Interim Dividend paid - Aug. 2012 General Reserve Fixed Assets Stock Debtors and Creditors Profit for 2012 Cash Balance Branch Current Account 8,00,000 25,310 30,000 1,00,000 5,30,000 2,22,470 50,500 21,900 82,200 62,730 1.33.710 10,29,410 10,29,410 Branch Trial Balance 7 * 95,000 31,700 Fixed Assets Profit for 2012 Stock Debtors and Creditors Cash Balance Head Office Current Account 50,460 19.100 6,550 10,400 1,71,110 1.29.010 1,71,110 The difference between the balances of the Current Account in the two sets of books is accounted for as follows: (a) Cash remitted by the Branch on 31st December, 2012, but received by the Head Office on 1st January 2013 - 73,000. (b) Stock stolen in transit from Head Office and charged to Branch by the Head Office, but not credited to Head Office in the Branch books as the Branch Manager declined to admit any liability (not covered by insurance) - 71,700. Give the Branch Current Account in Head Office books after incorporating Branch Trial Balance through journal. Also prepare the company's Balance Sheet as on 31st December, 2012