Amini Ltd. is a manufacturing business with the head office in Nairobi Kenya, and a branch in Kampala, Uganda. The branch carries out the final assembly of the goods before selling them. The trial balances for both the head office and the branch in their respective currencies as at 31 October were as follows:

Head office

Branch

Sh. "000"

Sh. "000"

Ush. "000"

Ush. "000"

Freehold building at cost

28,000

126,000

Debtors and creditors

17,800

19,000

72,000

3,120

Sales

208,000

864,000

Shares capital

80,000

Goods sent to branch

70,000

Head office/branch account

120,200

1,008,520

Cost of sales - branch

720,000

Provision for deciation on machinery

3,000

113,400

Head office cost of sales (including goods sent to branch)

118,000

Administration costs

30,400

36,000

Stock - 31 October 2019

57,800

23,040

Profit and loss account - 1 November 2018

4,000

Machinery at cost

12,000

252,000

Remittances

56,000

544,000

Bank balance

9,200

158,400

Selling and distribution costs

46,600

______

57,600

_______

440,000

440,000

1,989,040

1,989,040

Additional information:

1. The cost of sales figure includes a depreciation charge of 10% per annum on the cost of machinery.

2. A provision of Kshs. 600,000 for unrealized profit in the branch stock is to be made.

3. The branch remitted Ushs. 32,000,000 on 30 October 2019 which was not received by the head office until 3 November 2019. The amount realized was Kshs. 3,980,000.

4. During September 2019, a customer of the branch paid the head office for goods supplied by the branch. The amount due from him was Ushs. 640,000 which realized Kshs. 72,000. It has been correctly dealt with by the head office but not yet entered in the branch accounts.

5. Commission, which is payable to the branch Manager, is to be provided at 5% of the net profits of the branch after charging such commission.

6. The relevant exchange rates were as follows:

Kshs.

To

Ushs.

On 1 November 2018

1

10

On 31 October 2019

1

8

Average rate for the year ended 31 October 2019

1

9

On date of purchase of freehold building and machinery

1

7

Required:

(a) Branch trial balance (after the necessary adjustments) in Kenya shillings

(b) Statement of profit or loss for the head office, the branch and the combined business for the year ended 31 October 2019.

(c) Combined statement of financial position as at 31 October 2019

(Ignore the effects of taxation).

' ASSIGNMENT 3 SCHOOL OF BUSINESS AND PUBLIC MANAGEMENT ACC 3101: ADVANCED ACCOUNTING 1 Amini Ltd. is a manufacturing business with the head office in Nairobi Kenya, and a branch in Kampala, Uganda. The branch carries out the final assembly of the goods before selling them. The trial balances for both the head office and the branch in their respective currencies as at 31 October were as follows: Head office Branch Sh. Sh. Ush. Uah. '000' '000' '000' '000' Freehold building at cost 28,000 126,000 Debtors and creditors 1?,300 19,000 72,000 3,120 Sales 203,000 364,000 Shares ca 0 ital 80 000 Goods sent to branch 70 000 _ Head officelbranch account 120,200 1,003,520 Cost of sales - branch Provision for deciation on machiner 3,000 113,400 Head office cost of sales (including goods sent to 118,000 - branch) Administration costs 30,400 35,000 Stock - 31 October 2019 57,800 23,040 Profit and loss account - 1 November 2013 4,000 Machinery at cost 12,000 2 52,000 Remittances 50,000 544,000 Bank b al ance 9 200 1 58 400 Selling and distribution costs 5? 600 46 600 440 000 440 000 1 939 040 Additional information: 1. 2. 3 The cost of sales figure includes a depreciation charge cost of machinery. of 10% per annum on the A provision of Kshs. 600,000 for unrealized prot in the branch stock is to be made. . The branch remitted Ushs, 32,000,000 on 30 October 2019 which was not received by the head office until 3 November 2019. The amount realized was Kshs. 3,930,000. During September 2019, a customer of the branch paid the head office for goods supplied by the branch. The amount due from him was Ushs. 640,000 which realized |_ Kshs. 22,000. It has been correctly dealt with by the head office but not yet entered in the branch accounts. 5. Commission, which is payable to the branch Manager, is to be provided at 5% of the net profits of the branch after charging such commission. 6. The relevant exchange rates were as follows: Kshs To Uaha. On 1 November 2013 1 10 On 31 October 2019 1 8 Average rate for the year ended 31 October 2019 1 9 On date of purchase of freehold building and 1 1' machinery Required: (a) Branch trial balance (after the necessary adjustments) in Kenya shillings {b} Statement of profit or loss for the head office, the branch and the combined business forthe year ended 31 October 2019. (c) Combined statement of financial position as at 31 October 2019 (Ignore the effects of taxation)