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:

Head office Thika Branch

Sh. Sh. Sh. Sh.

Buildings (at cost) 3,500,000

Goods sent to branch

6,482,205

Goods received from head office

6,387,330

Accounts receivable 764,700

535,800

Remittances from branch

7,548,750

Remittances to head office

7,620,000

Cash at bank 397,800

289,250

Stock (at cost) 2,595,000

Stock (at mark up)

1,552,500

Sales

13,000,000

9,202,200

Capital (1 October 2013)

6,040,925

Bank overdraft

250,000

Furniture and fittings 779,500

230,500

Purchases 13,626,600

Rent and rates 395,400

197,250

Salaries and wages 851,700

487,500

Current accounts 8,931,555

8,836,680

General expenses 1,887,750

1,258,950

Accounts payable

1,239,000

270,200

Drawings 783,375

Provision for unrealized profits _________ 202,500 __________ _________

34,513,380 34,513,380 18,559,080 18,559,080

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 33% above the cost to head office. 5. No shortages of stock were reported at the head office or the branch. Required: (a) Prepare in columnar form for the head office, Thika branch and the combined business, the income statements for the year ended 30 September 2014. (12 marks) (b) The combined balance sheet as at 30 September 2014. (8 marks) (Total: 20 marks)

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: Buildings (at cost) Goods sent to branch Goods received from head office Accounts receivable Remittances from branch Remittances to head office Cash at bank Stock (at cost) Stock (at mark up) Sales Capital (1 October 2013) Bank overdraft Furniture and fittings Purchases Rent and rates. Salaries and wages Current accounts General expenses Accounts payable Drawings Provision for unrealized profits Head office Sh. 3,500,000 764,700 397,800 2,595,000 779,500 13,626,600 395,400 851,700 8,931,555 1,887,750 783,375 Sh. 6,482,205 7,548,750 13,000,000 6,040,925 1,239,000 202,500 34,513,380 34,513,380 Thika Branch Sh. 6,387,330 535,800 7,620,000 289,250 1,552,500 230,500 197,250 487,500 1,258,950 Sh. 9,202,200 250,000 8,836,680 270,200 18,559,080 18,559,080 Additional information: 1. Depreciation on furniture and fittings is to be provided at the rate of 10% per annum using the reducing balance method. 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. 2. 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. Goods were invoiced to the branch at 15% above cost. All sales were at a mark up of 33% % above the cost to head office. 5. No shortages of stock were reported at the head office or the branch. Required: 3. 4. (a) Prepare in columnar form for the head office, Thika branch and the combined business, the income statements for the year ended 30 September 2014. (12 marks) (b) The combined balance sheet as at 30 September 2014. marks) (8 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: Buildings (at cost) Goods sent to branch Goods received from head office Accounts receivable Remittances from branch Remittances to head office Cash at bank Stock (at cost) Stock (at mark up) Sales Capital (1 October 2013) Bank overdraft Furniture and fittings Purchases Rent and rates. Salaries and wages Current accounts General expenses Accounts payable Drawings Provision for unrealized profits Head office Sh. 3,500,000 764,700 397,800 2,595,000 779,500 13,626,600 395,400 851,700 8,931,555 1,887,750 783,375 Sh. 6,482,205 7,548,750 13,000,000 6,040,925 1,239,000 202,500 34,513,380 34,513,380 Thika Branch Sh. 6,387,330 535,800 7,620,000 289,250 1,552,500 230,500 197,250 487,500 1,258,950 Sh. 9,202,200 250,000 8,836,680 270,200 18,559,080 18,559,080 Additional information: 1. Depreciation on furniture and fittings is to be provided at the rate of 10% per annum using the reducing balance method. 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. 2. 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. Goods were invoiced to the branch at 15% above cost. All sales were at a mark up of 33% % above the cost to head office. 5. No shortages of stock were reported at the head office or the branch. Required: 3. 4. (a) Prepare in columnar form for the head office, Thika branch and the combined business, the income statements for the year ended 30 September 2014. (12 marks) (b) The combined balance sheet as at 30 September 2014. marks) (8