Below is the Trial Balance of Emotion Enterprise extracted from the books of the head office and the branch as at 30 June 2019 Head Office Branch RM RM RM RM Account Receivables 56,170 13,340 Account Payables 18,000 36,300 Fixtures and fittings 100,000 14,000 Head Office current account 18,138 Land and building 155,000 110,000 Motor vehicles 80,000 40,000 Accumulated depreciation Fixtures and fittings 20,000 2,800 Motor vehicles 8,000 4,000 Legal expenses 1,880 700 Administration expenses 8,200 10,100 Bank 13,208 3,520 Allowance for unrealised profit (1 July 2018) 1,308 Purchases Sales 50,000 256,460 170,510 Goods from head office 19,500 Goods sent to branch 21,000 Selling and distribution expenses 23,300 6,200 Inventories as at 1 July 2018 16,680 14,388 Capital 201,308 Branch current account 21,638 526,076 526,076 231,748 231,748 Additional information Goods are sent to branch at cost plus 10 The branch maintains its own ledgers and is allowed to purchase from local supplier Depreciation is to be provided on fixtures and fittings at 20 per annum and motor vehicles at 10 per annum, using straight line method Branch stock, taken on 30 June 2019, revealed a shortage of RM550 at transfer price As at 30 June 2019, goods sent by the head office amounted to RM1,500 was only received by the branch on 5 July 2019 The branch deposited a cheque of RM2,000 to the head office on 30 June 2019 but has not yet been received by the head office until 3 July 2019 The head office closing inventories are valued at a cost of RM30,000, while for the branch, its closing inventories are valued at a transfer price of RM15,000 Included in the administrative expenses of the branch was an amount of RM700 to be charged to the head office No entry had been made in both books Required Prepare Statement of Profit or Loss for the head office, branch, and business as a whole for the year ended 30 June 2019 (in columnar form) Prepare the Combined Statement of Financial Position as of 30 June 2019

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Posted on Jan 29, 2021

Below is the Trial Balance of Emotion Enterprise extracted from the books of the head office and the branch as at 30 June 2019:

	Head	Office	Branch
	RM	RM	RM	RM
Account Receivables	56,170		13,340
Account Payables		18,000		36,300
Fixtures and fittings	100,000		14,000
Head Office current account				18,138
Land and building	155,000		110,000
Motor vehicles	80,000		40,000
Accumulated depreciation:
Fixtures and fittings		20,000		2,800
Motor vehicles		8,000		4,000
Legal expenses	1,880		700
Administration expenses	8,200		10,100
Bank	13,208		3,520
Allowance for unrealised profit (1 July 2018)		1,308
Purchases/Sales	50,000	256,460		170,510
Goods from head office			19,500
Goods sent to branch		21,000
Selling and distribution expenses	23,300		6,200
Inventories as at 1 July 2018	16,680		14,388
Capital		201,308
Branch current account	21,638
	526,076	526,076	231,748	231,748

Additional information:

Goods are sent to branch at cost plus 10%. The branch maintains its own ledgers and is allowed to purchase from local supplier.

Depreciation is to be provided on fixtures and fittings at 20% per annum and motor vehicles at 10% per annum, using straight line method.

Branch stock, taken on 30 June 2019, revealed a shortage of RM550 at transfer price.

As at 30 June 2019, goods sent by the head office amounted to RM1,500 was only received by the branch on 5 July 2019.

The branch deposited a cheque of RM2,000 to the head office on 30 June 2019 but has not yet been received by the head office until 3 July 2019.

The head office closing inventories are valued at a cost of RM30,000, while for the branch, its closing inventories are valued at a transfer price of RM15,000.