1. On December 31, the unadjusted balance of Investment in Baclaran Branch Account is P165,920 in the Home Office’s Book. The following data were found in your examination of the books of the Home Office and its Baclaran Branch:

a. Transfer of fixed assets from Home Office amounting to P53,960 was not booked by Baclaran Branch.

b. P10,000 covering marketing expense of Bataan Branch was charged by Home Office to Baclaran Branch.

c. Baclaran Branch recorded a debit note on inventory transfers from Home Office of P75,000 twice.

d. Home Office recorded cash transfer of P65,700 from Baclaran Branch as coming from Davao Branch.

e. Baclaran Branch reversed a previous debit memo from Bohol Branch amounting to P10,500. Home Office decided that this charge is appropriately Davao’s Branch.

f. Baclaran Branch recorded a debit memo from Home Office of P4,650 as P4,560.

What is the unadjusted balance of Home Office Current Account in Baclaran Branch’s books on December 31?

Answer rating: 100% (QA)

Answer 111170 Explanation Debit Credit Erroneous charging of expense 10000 Err... View the full answer