TUTORIAL BRANCH-SEPT 2019 Abadi Holdings commenced business on 1 January 2016. It has a branch in Langkawi whilst its head office is in Dungun. The following are taken from the books of both head office and branch as at 31 December 2019. Langkawi Dungun RM RM 155,000 65,000 36,150 9,430 35,000 25,500 45,250 14,480 8,400 6,500 Land and Building at cost Motor Vehicles at cost Branch Current Account Account Receivables Purchases Inventories as at 1 January 2019 Administrative Expenses Financial Expenses Selling and Distribution Expenses Depreciation Expenses: Land and Building Motor Vehicles 24,950 6,420 9,575 1,800 1,400 405 3,800 2,500 1,515 Bank 27,875 2,000 Goods from Head office 11,200 415,350 78,800 300,000 29,400 Capital Head office Current Account Allowance for Unrealized Profit, 1 January 2019 Sales 1,200 74,310 40,825 16,000 Goods Sent to Branch Accumulated Depreciation, 31 December 2019: Land and Building Motor Vehicles Account Payables 3,800 2,500 1,515 17,540 7,060 78,800 415,350 Additional information: 1. All goods were sent to branch at cost plus 10%. Branch is allowed to purchase goods from outside suppliers. 2. Inventories as at 31 December 2019 are as follows: Dungun RM12,500. Langkawi RM6,600 (from Dungun). 3. On 31 December 2019, an estimated RM4,800 worth of goods were still in transit and RM800 cash remittance was yet to be received. 4. A branch administrative expense of RM680 was paid by head office. This was not recorded in either book. Required: (a) Prepare the Statement of Profit and Loss for the Head office, the Branch and the combined entities for the year ended 31 December 2019. (15 marks) (b) Prepare the Branch Current Account showing the adjustments needed to reconcile the balance with the Head Office Current Account