QUESTION FOUR The following trial balances for the year ended 31 December 2020 were obtained from the Head Office and Branch of Spring Limited. Head Office Branch Debit Credit Debit Credit GH&'000 GH4000 GH&'000 GH4'000 Office equipment 54,000 10,500 Motor vehicles 4,200 1,800 Retained earnings 52,200 Branch current accounts 49,500 Inventory (at cost or mark up at 1/1/2020) 63,600 21,600 Goods from Head Office 55,800 Purchases 114,000 Sales 145,500 90,600 Head office current accounts 12,300 Stated capital 28,980 Administrative expenses 31,500 13,200 Provision for unrealised profit 4,320 Goods sent to branch 85,800 316,800 316,800 102,900 102,900 Additional information was as follows: i) The branch deposited cash on behalf of the head office in the bank on 31 December 2020. No record of this transaction had been made in head office books. ii) All goods sold by the branch are supplied from the head office at cost plus 25%. Inventories at 31 December 2020, excluding goods in transit were as follows: GH&'000 Head office at cost 43,500 Branch at mark up 24,000 Required: Prepare for the head office, branch and combined entity of Spring Limited: 5 QUESTION FOUR The following trial balances for the year ended 31 December 2020 were obtained from the Head Office and Branch of Spring Limited. Head Office Branch Debit Credit Debit Credit GH&'000 GH4000 GH&'000 GH4'000 Office equipment 54,000 10,500 Motor vehicles 4,200 1,800 Retained earnings 52,200 Branch current accounts 49,500 Inventory (at cost or mark up at 1/1/2020) 63,600 21,600 Goods from Head Office 55,800 Purchases 114,000 Sales 145,500 90,600 Head office current accounts 12,300 Stated capital 28,980 Administrative expenses 31,500 13,200 Provision for unrealised profit 4,320 Goods sent to branch 85,800 316,800 316,800 102,900 102,900 Additional information was as follows: i) The branch deposited cash on behalf of the head office in the bank on 31 December 2020. No record of this transaction had been made in head office books. ii) All goods sold by the branch are supplied from the head office at cost plus 25%. Inventories at 31 December 2020, excluding goods in transit were as follows: GH&'000 Head office at cost 43,500 Branch at mark up 24,000 Required: Prepare for the head office, branch and combined entity of Spring Limited: 5