Jonel Corporation operates a branch in Cebu. In October, the HO shipped P 68,000 merchandise to this branch, which the branch credited the HO account for P 86,000. In November, the branch collected P2,000 HO accounts receivable. The HO was properly notified but debited Investment in Branch account for P 8,000. At the end of the year, the HO paid and recorded a P 12,000 expense for the branch but the branch has not yet made the appropriate entry for this. At year-end, the branch transferred P 50,000 cash to HO but the HO has not yet made the necessary entry.

Based on the above, the corrections needed are

a. HO to credit its Investment in Branch account for P 48,000, and the Branch to debit the HO account for P 18,000.

b. HO to credit its Investment in Branch account for P 60,000 and the Branch to debit the HO account for P6,000

c. HO to credit its Investment in Branch account for P 56,000 and the Branch to debit the HO account for P 6,000.

d. HO to credit its Investment in Branch account for P 44,000 and the Branch to debit the HO account for P 30,000.