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The following partial transactions took place between the home office and its two branches, Luzon branch and Visayas branch. Upon the instruction of the home
The following partial transactions took place between the home office and its two branches, Luzon branch and Visayas branch.
- Upon the instruction of the home office, Visayas branch made a fund transfer of P25,000 to Luzon branch.
- Luzon branch collected a Visayas branchs accounts receivable of P25,000 less 2% discount.
- Visayas branch paid P250,000 representing the travelling expense of a senior vice-president, when he attended the regional conference in Canada. Of the amount paid, 60% was charged to the home office, 25% to Luzon branch and the balance to Visayas branch.
- Home office shipped merchandise costing P200,000 to Visayas branch. Freight of P3,000 was paid by the home office. it is the policy of the company to bill its branches at 25% above cost.
- Upon the instruction of the home office, Visayas reshipped the above merchandise to Luzon branch. Freight of P1,500 was paid by Luzon branch. Had the goods been shipped directly to Luzon branch, the freight would have been only P4,200.
What is the balance of the Home office account in the books of Luzon branch?
Select one:
a.
P374,500
b.
P370,300
c.
P378,700
d.
P312,000
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