D Little Ltd has a branch in Bath at which a full set of books is kept. At the end of the year the following summary is compiled of the transactions between the branch and the head office as recorded in the latter’s books:

At 30 September the branch profit and loss account showed a net profit of £42,000 for the six months.

(a) Show the above items as they would appear in the ledger of the head office.

(b) How can any resulting balance from these figures be proved, and what does it indicate?

Transcribed Image Text:

Balance due from branch 1 April Cash received from branch Goods supplied to branch Goods returned by branch Expenses paid on behalf of branch £ 60,480 90,000 69,480 1,200 11,000