ILLUSTRATION 4. Head Office of a business and its branch keep their own books and each prepares its own Profit and Loss Account. Following are the balances appearing in the two sets of books as on 31st March, 2015, after the ascertainment of profit and after making all adjustments except those referred to below : Head Office Branch Office Dr. Cr. Dr. Cr. Capital 1,00,000 Fixed Assets 36,000 16,000 Stock 34,200 10,740 Debtors & Creditors 7,820 3,960 4,840 1,920 Cash 10,740 1,420 Profit & Loss 14,660 3,060 Branch Office Account 29,860 Head Office Account 28,020 1,18,620 1,18,620 33,000 33,000 Pass Journal Entries necessary (in both sets of books) to record the adjustment dealing with the following and prepare a Balance Sheet as on 31st March, 2015. (a) On 31st March, the branch had sent a cheque for $1,000 to the head office, neither received nor credited to the branch till next month. (b) Goods valued at $440 had been forwarded by the head office to the branch and invoiced on 30th March, but were neither received by the branch nor dealt with in their books till next month. (c) It was agreed that the branch should be charged with $300 for administration services rendered by the head office during the year. (d) Stock stolen in transit from the head office to the branch and charged to the branch by the head office but not credited to the head office in the branch books as the branch manager declined to admit any liability, $400 (not covered by insurance). (e) Depreciation of branch assets, of which accounts are maintained by the head office not provided for $250. (f) The balance of profit shown by the branch is to be transferred to the head office books