Nion is a retail goods outlet operating from a head office in London and a branch in Brighton. The following trial balances have been extracted from the books of account as at 31 October 2018.

Additional information:
1 All goods are purchased by the head office. Those goods sent to the branch are invoiced at cost plus 25%.
2 Inventories were valued at 31 October 2018 as being at head office, £12,000; and at the branch, £15,000 at their invoiced price.
3 Depreciation is to be provided for the year on the non-current assets at a rate of 10% on the historic cost.
4 The allowance for doubtful debts is to be maintained at a rate of 5% of outstanding trade debtors as at the end of the financial year.
5 As at 31 October 2018, there was £50,000 cash in transit from the branch to the head office; this cash was received in London on 3 November 2018. There was also £5,000 of goods in transit at invoice price from the head office to the branch; the branch received these goods on 10 November 2018.

Required:
Prepare in adjacent columns: (a) the head office, and (b) the branch statements of profit or loss for the year ending 31 October 2018; and a combined statement of financial position for Nion as at that date.
(i) A combined statement of profit or loss is NOT required; and
(ii) Separate statements of financial position for the head office and the branch are also NOT required.

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Drawings Non-current assets: at cost accumulated depreciation (at 1 November 2017) Inventory (at 1 November 2017) Provision for unrealised profit Purchases Goods sent to branch at invoiced value Sales Allowance for doubtful debts Head office/branch current accounts Distribution expenses Administrative expenses Trade accounts receivable Trade accounts payable Cash and bank balances Capital Head Office Books Dr £ 40,000 350,000 8,000 914,000 175,000 80,500 200,000 60,000 15,500 Cr £ 140,000 4,000 380,000 850,000 9,000 50,000 410,000 £1,843,000 £1,843,000 Branch Books Dr £ 100,000 20,000 375,000 Cr £ 30,000 437,000 2,500 120,000 5,000 16,500 60,000 13,000 £589,500 £589,500