Illustration 11 Ring Bell Ltd. Delhi has a Branch at Bombay where a separate set of books is used. The following is the trial balance extracted on 31st December, 2005, Head Office Trial Balance Rs. Rs. Share Capital (Authorised: 10,000 Equity Shares of Rs. 100 each): Issued: 8,000 Equity Shares 8,00,000 Profit & Loss Account - 1-1-2005 25,310 Interim Dividend paid - Aug. 2005 30,000 General Reserve 1,00,000 Fixed Assets 5,30,000 Stock 2,22,470 Debtors and Creditors 50,500 21,900 Profit for 2005 82,200 Cash Balance 62,730 Branch Current Account 1,33,710 10,29,410 10,29,410 Branch Trial Balance Rs. Rs. Fixed Assets 95,000 Profit for 2005 31,700 Stock 50,460 Debtors and Creditors 19,100 10,400 Cash Balance 6,550 Head Office Current Account 1,29,010 1.71.110 1.71.110 446 The difference between the balances of the Current Account in the two sets of books is accounted for as follows: (a) Cash remitted by the Branch on 31st December, 2005, but received by the Head Office on 1st January 2006 - Rs. 3,000 (6) Stock stolen in transit from Head Office and charged to Branch by the Head Office, but not credited to Head Office in the Branch books as the Branch Manager declined to admit any liability (not covered by insurance) - Rs. 1,700. Give the Branch Current Account in Head Office books after incorporating Branch Trial Balance through journal. Also prepare the company's Balance Sheet as on 31st December, 2005