QUESTION FOUR The following trial balances for the year ended 31 December 2021 were obtained from the Head Office and Branch of JAP Limited. Head Office Branch Debit Credit Debit Credit GH'000 GHe'000 GHE'000 GHe'000 54,000 10,500 Office equipment Motor vehicles Retained earnings 4,200 1,800 52,200 Current accounts 49,500 12,300 Inventory (at cost or mark up at 1/1/2021) 63,600 21,600 5 55,800 Goods from Head Office 114,000 Purchases 145,500 90,600 Sales 25,500 Stated capital 31,500 13,200 Administrative expenses Provision for unrealised profit Goods sent to branch 7,800 85,800 316,800 102,900 102,900 316,800 Additional information was as follows: i) The branch deposited cash on behalf of the head office in the bank on 31 December 2021. 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%. iii) Inventories at 31 December 2018, excluding goods in transit were as follows: GHE1000 Branch at mark up Head office at cost 24,000 43,500 Required: Prepare for the head office, branch and combined entity of JAP Limited: a) Statement of profit or loss for the year ended 31 December 2021; and b) Statement of financial position as at 31 December 2021. (10 marks) QUESTION FOUR The following trial balances for the year ended 31 December 2021 were obtained from the Head Office and Branch of JAP Limited. Head Office Branch Debit Credit Debit Credit GH'000 GHe'000 GHE'000 GHe'000 54,000 10,500 Office equipment Motor vehicles Retained earnings 4,200 1,800 52,200 Current accounts 49,500 12,300 Inventory (at cost or mark up at 1/1/2021) 63,600 21,600 5 55,800 Goods from Head Office 114,000 Purchases 145,500 90,600 Sales 25,500 Stated capital 31,500 13,200 Administrative expenses Provision for unrealised profit Goods sent to branch 7,800 85,800 316,800 102,900 102,900 316,800 Additional information was as follows: i) The branch deposited cash on behalf of the head office in the bank on 31 December 2021. 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%. iii) Inventories at 31 December 2018, excluding goods in transit were as follows: GHE1000 Branch at mark up Head office at cost 24,000 43,500 Required: Prepare for the head office, branch and combined entity of JAP Limited: a) Statement of profit or loss for the year ended 31 December 2021; and b) Statement of financial position as at 31 December 2021. (10 marks)