Mamat Sdn Bhd, which operates in Dungun, has a branch Kerteh. Dungun sends goods to Kerteh at cost plus 10%. The Mersing branch is allowed to make its own local purchases and maintain its own accounting records.

 

The following is the list of ledger balances as of 31 December 2014.

	Dungun		Kerteh
	RM	RM	RM	RM
	Dr	Cr	Dr	Cr
Capital		300,000
Sales		74,310		40,825
Purchase	45,250		8,400
Goods sent to Branch		16,000
Goods from head office			11,200
Debtors	25,500		9,430
Creditors		17,540		7,060
Land and Building at cost	155,000
Motor Vehicle at cost	65,000		36,150
Branch current account	35,000		-
Head office current account		-		29,400
Opening Stock	14,480		6,500
Selling and distribution expenses	9,575		405
Administrative expenses	24,950		1,800
Finance expenses	6,420		1400
Cash at Bank	27,875		2,000
Provision for unrealized profit		1,200
	409,050	409,050	77,285	77,285

Additional information:

1. Goods invoiced at RM 4,800 are in transit and RM 800 cash remittance was yet to be received on 31 December 2014.

2. Stock at 31 December 2014:

	RM
Head Office	12,500
Branch	From Dungun: 6,600

3. Depreciation as at 31 December 2014 are as follows:

	Dungun	Kerteh
Land and Building	3,800	-
Motor Vehicle	2,500	1,515

 

4. A branch administrative expense of RM 680 was paid by head office. This was not recorded in either book.

Required: 

A. Statement of Comprehensive Income for the Head office, the Branch, and the combined entities for the year ended 31 December 2014.                                         B. Branch current account.                                                                                                    

C. Combined Balance Sheet as of 31 December 2014                 

D. Why the balance of the branch current account and head office current account have different amounts.