Prepare in columnar form for the head office. Thika branch and the combined business. The income...

 

 

  

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Prepare in columnar form for the head office. Thika branch and the combined business. The income statements for the year ended 30 September 2004. (12 marks) Kema traders has a head office in Nanyuki and an automation branch in Thika. The trial balances of head office and the branch as at 30 September 2004 were as follows: Head office Thika branch Sh. Sh. Sh. Sh. Buildings (at cost) 3,500,00 0 Goods sent to branch 6,482,20 5 Goods received from 6,387,33 head office Accounts receivable 764,700 535,800 Remittance from branch 7,548,75 0 Remittances to head 7,620,00 office Cash at bank 397,800 289,250 Stock (at cost) 2,595,00 0 Stock (at mark up) Sales Capital (1 October 2003) Bank overdraft Furniture and fittings 779,500 Purchases 13,626,6 Rent and rates 00 395,400 197,250 1,552,50 0 13,000,0 9,202,20 00 0 6,040,92 5 250,000 230,500 Salaries and wages 851,700 487,500 Current accounts 8,931,55 8,836,68 5 General expenses 1,887,75 1,258,95 0 0 Accounts payable 1,239,00 270,200 0 Drawings 783,375 Provision for unrealised profits 202,500 34.513.3 34.513.3 18.559.0 18.559.0 80 80 80 80 Additional Information: 1. Depreciation on furniture and fittings is to be provided at the rate of 10% per annum using the reducing balance method. 2. A bonus of 10% is payable to the staff at the head office and the branch. The bonus is based on net profits after charging these bonuses. 3. Goods sent to the branch in August 2004 and which had an invoice value of Sh.94,875 were stolen in transit. The insurance company agreed to meet the claim to the extent of only 85% of the cost of the goods. 4. Goods were invoiced to the branch at 15% above cost all sales were at a mark up of 331/3% above the cost to head office. 5. No shortages of stock were reported at the head office or the branch. Prepare in columnar form for the head office. Thika branch and the combined business. The income statements for the year ended 30 September 2004. (12 marks) Kema traders has a head office in Nanyuki and an automation branch in Thika. The trial balances of head office and the branch as at 30 September 2004 were as follows: Head office Thika branch Sh. Sh. Sh. Sh. Buildings (at cost) 3,500,00 0 Goods sent to branch 6,482,20 5 Goods received from 6,387,33 head office Accounts receivable 764,700 535,800 Remittance from branch 7,548,75 0 Remittances to head 7,620,00 office Cash at bank 397,800 289,250 Stock (at cost) 2,595,00 0 Stock (at mark up) Sales Capital (1 October 2003) Bank overdraft Furniture and fittings 779,500 Purchases 13,626,6 Rent and rates 00 395,400 197,250 1,552,50 0 13,000,0 9,202,20 00 0 6,040,92 5 250,000 230,500 Salaries and wages 851,700 487,500 Current accounts 8,931,55 8,836,68 5 General expenses 1,887,75 1,258,95 0 0 Accounts payable 1,239,00 270,200 0 Drawings 783,375 Provision for unrealised profits 202,500 34.513.3 34.513.3 18.559.0 18.559.0 80 80 80 80 Additional Information: 1. Depreciation on furniture and fittings is to be provided at the rate of 10% per annum using the reducing balance method. 2. A bonus of 10% is payable to the staff at the head office and the branch. The bonus is based on net profits after charging these bonuses. 3. Goods sent to the branch in August 2004 and which had an invoice value of Sh.94,875 were stolen in transit. The insurance company agreed to meet the claim to the extent of only 85% of the cost of the goods. 4. Goods were invoiced to the branch at 15% above cost all sales were at a mark up of 331/3% above the cost to head office. 5. No shortages of stock were reported at the head office or the branch.

Answer rating: 100% (QA)

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