Additional information:

Stock at 30 June 2008 was valued as follows:

Head office at cost 20,000

Branch at cost to branch 24,000

Goods in transit to branch at cost to branch 12,000

Goods purchased by the head office and sold to the branch are transferred at cost plus 20%.

At 30 June 2008 the branch had transferred 10,000 to the head office's bank account but as at that date, no record had been made in the head office's books of account

Required: Prepare in adjacent columns the following:

a. the head office, the branch, and the income statement for the year to 30 June 2008; and

b. the head office, the branch, and the combined statement of financial position as at that date.

Question Three A \& B Ltd's head office is in Accra, and it has a branch at Tema. The following trial balances have been extracted from the respective books of account of both the head office and the branch as at 30 June 2008 . Question Three A \& B Ltd's head office is in Accra, and it has a branch at Tema. The following trial balances have been extracted from the respective books of account of both the head office and the branch as at 30 June 2008