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Jamila Traders has a head office in Nanyuki and an autonomous branch in Thika. The trial balances of the head office and the branch as
Jamila Traders has a head office in Nanyuki and an autonomous branch in Thika. The trial balances of the head office and the branch as at 30 September 2014 were as follows: 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 2014 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 3331% above the cost to head office. 5. No shortages of stock were reported at the head office or the branch. Requirad: The combined balance sheet as at 30 September 2014
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