Illustration of double entry-branches, Financial Accounting

Assignment Help:

Illustration of double entry
The balances on the current accounts of a head office and branch were Ksh 698,000, before the transactions listed below:

 

Kshs

Goods sent to branch by head office

1,727,000

Remittances received by head office from branch

892,000

Goods received by branch from head office

1,620,000

Remittances sent to head office by branch

944,000

Branch profit for the period

594,000

Goods in transit from head office to branch

107,000

Cash in transit from branch to head office

52,000

 

Books of head office:

                                          Branch Current A/C

 

Sh

 

Sh

Bal b/d

698,000

Cash book

892,000

GSTB

1,727,000

Bal c/d

*1,533,000

 

2,425,000

 

2,425,000

Bal b/d

1,533,000

Goods in transit

107,000

Branch profit

594,000

Cash in transit

52,000

 

________

Bal c/d

1,968,000

 

2,127,000

 

2,127,000

 

*  Entry that is usually found in the trial balance of the Head Office.

 

                                         Goods sent to branch

 

Sh

 

Sh

 

 

Branch current a/c

1,727,000

 

                                              Goods in transit

 

         Sh

 

Sh

Branch current a/c

107,000

 

 

 

                                             Cash in transit

 

     Sh

 

Sh

Branch current a/c

52,000

 

 

 

Books of the branch:

                                    Head office current account

 

Sh

 

Sh

Cash book

944,000

Bal b/d

698,000

Bal c/d*

1,374,000

 

1,620,000

 

2,318,000

 

2,318,000

 

 

Bal b/d

1,374,000

Bal c/d

1,968,000

Branch profit

594,000

 

1,968,000

 

1,968,000

 

*  Entry that is usually found in the trial balance of the branch.

 

                                     Goods from head office

 

     Sh

 

Sh

H.O current a/c

1,620,000

 

 


Related Discussions:- Illustration of double entry-branches

Derivatives, On April 10, ABC inc. Enters in a swap contract for 10 years w...

On April 10, ABC inc. Enters in a swap contract for 10 years with a chartered bank to turn a fixed rate on liability of $150 million to floating rate. ABC wants to receive interest

Create multiple portfolios standard and poor mid cap, In this project you w...

In this project you will use your many skills to create multiple portfolios, using the Standard and Poor's Mid Cap 400 as your dataset. First, construct an index fund using a st

Show danger of high financial gearing, Q. Show danger of high financial gea...

Q. Show danger of high financial gearing? A additional danger of high financial gearing is that a company may move into a loss-making position as a result of high interest paym

Which of the following statements is true, Richard Company had 102,000 shar...

Richard Company had 102,000 shares of $5 par value common stock issued and outstanding before repurchasing 10,200 shares for $76,500. Richard had received $2,040,000 cash from shar

Compute the npv of the cash flows, Ace Company has a 30 percent marginal ta...

Ace Company has a 30 percent marginal tax rate and uses a 12% discount rate to compute NPV. The firm started a venture that will yield the following before-tax cash flows: year 0,

Illustration of corporate tax-income tax-financial statement, Illustration ...

Illustration of Corporate tax During the year ended31/12/2003, A Ltd. had estimated the corporation tax for the year to be £100,000. The amount was still outstanding as at 31/1

Explain depreciate non-current assets, Question: Lucy Kim is in the car...

Question: Lucy Kim is in the car hire business. The following information came from her Fixed Asset Register on 31 December 2009: On 31 March 2009, she sold the car wh

Branch accounting, some lectures on branch accounting chapter of advance ac...

some lectures on branch accounting chapter of advance accounting or way how to do journal entries or way of branch accounting??i m totally unaware of this chapter and want to study

Company conversion features-partnership, Company conversion features If...

Company conversion features If the formation costs are to be bourne by the company then the profit or loss on realization will be the same as the company then the new company (

Calculate the beta of assets , An investor holds a bullish view for the equ...

An investor holds a bullish view for the equity market over the next twelve months and wishes to recalibrate his portfolio to reflect this view. The investor's portfolio consists o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd