QUESTION THREE a) ABC & Co. of Nairobi has a branch in Kitale, Goods are sent by the head office at invoice price which is at a profit of 20% on cost price. All expenses of the branch are paid by the head office. The following information is provided in respect of Kitale Branch in the books of the head office. (goods are shown at an invoice price). Opening balances: Stock at invoice price Debtors Petty cash Goods sent to branch at invoice price Expenses made by head office: Rent Wages Salary, etc. Remittances made to head office: Cash sales Cash collected from debtors Goods returned by branch at invoice price Balances at the end: Stock at invoice price Debtors at the end Petty cash Required (ksh,000) 11,000 1,700 100 20,000 600 200 900 2,650 21,000 400 13,000 2,000 25 # Kitale Branch account in the books of H/O (10 mrks) b) Clearly explain the rule in Garner Vs Murray (1903) under insolvency of partnership citing the two stated implications (5Mks) (Total: 15 marks)