Mwenyeji Limited exported some of its products through an overseas branch whose currency is Kove. The trial balances of the Head Office and the Branch as at 30 June 2000 are as follows:

	Head Office	Branch
	Sh. 000	Sh. 000	Kove 000	Kove 000
Freehold buildings at cost Debtors/Creditors Sales Issued share capital Components sent to Branch Head Office/Branch Accounts Branch cost of sales Provision of depreciation on machinery. Head Office cost of sales (including goods sent to Branch) Administrative cost Stock 30 June 1999 Profit and loss account Machinery at cost Remittances Cash at Bank Selling and distribution cost	14,000 8,900 60,100 59,000 15,200 28,900 6,000 4,600 23,300 220,000	9,500 104,000 40,000 35,000 1,500 2,000 28,000 ______ 220,000	63,000 36,000 360,000 18,000 11,520 126,000 272,000 79,200 28,800 994,520	1,560 432,000 504,260 56,700 ______ 994,520

The following adjustments are to be made:

The cost of sales figure includes a depreciation charge of 10% per annum on cost of machinery.

A provision of Sh.300,000 for unrealized profits in the branch stock is to be made. The closing stock in the branch was sent close to the balance sheet date.

On 26 June 2000, the Branch remitted Kove. 16,000,000. This amount was received by the Head Office on 14 July 2000 and realized Sh.1,900,000.

During May 2000, a customer of the branch by mistake paid the Head Office for goods supplied by the Branch. The amount due from him was Kove. 320,000 which realized Sh.36,000. It has correctly been recorded in the Head Office books but has not yet entered in the branch accounts.

A commission of 5% of the net profits of the branch after charging such commission is payable to the Branch Manager.

The exchange rates are:

At July 1999 At 30 June 2000 Average rate for the year On date of purchase of Building and Machinery

10 Kove = Sh.1 8 Kove = Sh 1 9 Kove = Sh.1 7 Kove Sh.1

Required:

Detailed trading and profit and loss accounts of the Head Office and the Branch for the year ended 30 June 2000.

A Balance Sheet as at 30 June 2000 combining the figures of the Head Office and the