Following adjustments are to be made: (1) The cost of sales figure includes a depreciation charge of 10% per annum on the cost of machinery. (2) A Provision of Tk. 300 for unrealized profits in the branch stock is to be made. (3) On 26th June, 2012 the branch remitted 16,000 FL this amount was received by the H.O on 14th July, 2012 and realised Tk. 1,900. (4) During May 2012, a customer of the branch by mistake paid the H.O for goods supplied by the branch. The amount due from him was FL 320 which realised Tk. 36. It has been correctly dealt with by H.O but not yet entered in the Branch Accounts. (5) Provide commission at 5 percent of the net profits of the branch after charging such commission which is payable to the Branch Manager. (6) The exchange rates were; (a) At 1st July, 2011: 10 FL = 1 Taka; (b) At 30th June, 2012: 8FL = 1 Taka: (c) Average rate for the year; 9 FL = 1 Taka; and (d) On date of purchase of building and machinery: 7 FL = 1 Taka. Required: You are required to prepare for internal use: (i) Branch Trail Balance (after above adjustments) in H.O currency. (ii) Detailed Trading and Profit and Loss Accounts of H.O and the branch for the ending 30th June, 2012. (iii) Balance Sheet as at 30th June, 2012 (Combined) figures of the H.O and the branch). Ignore taxation.

ABC Limited, a manufacturing business, exports some of its products through an overseas branch whose currency is "Florins which carries out the final assembly operation before selling the goods. The Trial Balance of the Head Office and the branch on June 30, 2012 were as under: Head of Account Home Office Branch Office Dr. (Tk.) Cr. (Tk.) Dr. (FL) Cr. (FL) 14,000 63,000 8.900 9,500 46,000 11,560 1,04,000 4,32,000 140,000 35,000 60.100 5,04,260 3,60,000 1,500 56,700 59,000 Freehold building at cost Debtors/Creditors Sales Issued share capital Components sent to branch Head Office/Branch Branch-Cost of Sales Provision for depre. on machinery HO cost of sales (including goods sent to branch) Administrative cost Stock on 30th June 2012 Profit & Loss Account Machinery at cost Remittances Cash at bank Selling and distribution cost Total 15,200 18,000 28,900 11,520 2,000 6,000 1,26,000 28.000 2,72,000 104,600 79,200 23,300 28,800 3,20,000 3,20,000 104,520 104,520 ABC Limited, a manufacturing business, exports some of its products through an overseas branch whose currency is "Florins which carries out the final assembly operation before selling the goods. The Trial Balance of the Head Office and the branch on June 30, 2012 were as under: Head of Account Home Office Branch Office Dr. (Tk.) Cr. (Tk.) Dr. (FL) Cr. (FL) 14,000 63,000 8.900 9,500 46,000 11,560 1,04,000 4,32,000 140,000 35,000 60.100 5,04,260 3,60,000 1,500 56,700 59,000 Freehold building at cost Debtors/Creditors Sales Issued share capital Components sent to branch Head Office/Branch Branch-Cost of Sales Provision for depre. on machinery HO cost of sales (including goods sent to branch) Administrative cost Stock on 30th June 2012 Profit & Loss Account Machinery at cost Remittances Cash at bank Selling and distribution cost Total 15,200 18,000 28,900 11,520 2,000 6,000 1,26,000 28.000 2,72,000 104,600 79,200 23,300 28,800 3,20,000 3,20,000 104,520 104,520