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Question 2 Kweku Boasiako Ltd, a pharmaceutical company in Accra receives large orders from customers in Takoradi. In December 2018, management decided to start
Question 2 Kweku Boasiako Ltd, a pharmaceutical company in Accra receives large orders from customers in Takoradi. In December 2018, management decided to start a new branch at Takoradi. The Takoradi branch became operational in January 2019. The following information relates to their operations for February 2019: Balances as at 31" January 2019 Cash at Bank GH 17,500 Stock of Pharmaceutical product GH 25,800 Transactions during the month of February were Goods sent to Branch (at cost to head office) GH128,500 Goods returned from branch to Head office (at cost of HO) GH13,250 Cash sales paid in bank account GH108,900 Credit sales GH44,700 Goods received from customers GH1,500 Cheques received from customers GH40,600 Office Stationery GH2,000 General Expenses GH 800 Bad Debts written off GH500 Discount allowed to customers GH800 Cash sent to head office GH151,300 Transactions at head office on behalf of branch: Goods sent to branch (at cost to the office) as above Rent and rates Gh 4.500 Stock at the branch at the end of February was GH 8.000 Required Using the Cost price method, post the above transactions into the relevant ledgers in the Head office books (30 Marks)
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