Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 4 A&B Ltd's head office is in Accra, and it has a branch at Tema. The following trial balances have been extracted from the
QUESTION 4 A&B Ltd's head office is in Accra, and it has a branch at Tema. The following trial balances have been extracted from the respective books of account of both the head office and the branch as at 30 June 2008 Debit Credit Credit Debit 9,000 135,000 46,000 300,000 22,500 5,000 20,000 2,000 15,000 19,000 30,000 12,000 166,000 24.000 38,000 Administrative expenses Branch current account on current moet Stated ordinary share capital Debtors and Creditors Cash at bank and in hand Distribution cost Goods sent to branch Head office current account - quity Plant and machinery (net book value) Profit and loss account (at 1/7/07) Provision for unrealized profit on stock held by branch Purchases and sales Good from Head office Purchas Stock at cost or cost to branch (at 1 July 2007) 383,000 28,000 1,500 350,000 215,000 225.000 154,000 9,000 15,000 868,000 868,000 244,000 244,000 Additional information: Stock at 30 June 2008 was valued as follows: Head office at cost 20,000 Branch at cost to branch 24,000 Goods in transit to branch at cost to branch 12,000 Goods purchased by the head office and sold to the branch are transferred at cost plus 20%. At 30 June 2008 the branch had transferred 10,000 to the head office's bank account but as at that date, no record had been made in the head office's books of account Required: Prepare in adjacent columns the following: a) The head office, the branch, and the income statement for the year to 30 June 2008; and b) The head office, the branch, and the combined statement of financial position as at that date. QUESTION 4 A&B Ltd's head office is in Accra, and it has a branch at Tema. The following trial balances have been extracted from the respective books of account of both the head office and the branch as at 30 June 2008 Debit Credit Credit Debit 9,000 135,000 46,000 300,000 22,500 5,000 20,000 2,000 15,000 19,000 30,000 12,000 166,000 24.000 38,000 Administrative expenses Branch current account on current moet Stated ordinary share capital Debtors and Creditors Cash at bank and in hand Distribution cost Goods sent to branch Head office current account - quity Plant and machinery (net book value) Profit and loss account (at 1/7/07) Provision for unrealized profit on stock held by branch Purchases and sales Good from Head office Purchas Stock at cost or cost to branch (at 1 July 2007) 383,000 28,000 1,500 350,000 215,000 225.000 154,000 9,000 15,000 868,000 868,000 244,000 244,000 Additional information: Stock at 30 June 2008 was valued as follows: Head office at cost 20,000 Branch at cost to branch 24,000 Goods in transit to branch at cost to branch 12,000 Goods purchased by the head office and sold to the branch are transferred at cost plus 20%. At 30 June 2008 the branch had transferred 10,000 to the head office's bank account but as at that date, no record had been made in the head office's books of account Required: Prepare in adjacent columns the following: a) The head office, the branch, and the income statement for the year to 30 June 2008; and b) The head office, the branch, and the combined statement of financial position as at that date
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started