QUESTION 4 A & B Lid's head office is in Accra, and it has a branch at Tema. The following trial balances have been extracted from the respective books of account of both the head office and the branch as at 30" June 2008. Debit Credit Debit Credit Administrative expenses 135,000 9.000 Branch current account 46,000 Stated ordinary share capital 300,000 Debtors and Creditors 15.000 22,500 20,000 5.000 Cash at bank and in hand 19,000 2,000 Distribution cost 30.000 12,000 Goods sent to branch 166,000 Head office current account 24,000 Plant and machinery (net book value) 383,000 38,000 Profit and loss account (at 1/7/07) 28,000 Provision for unrealized profit on stock held by branch 1.500 Purchases and sales 225,000 350,000 215,000 Good from Head office 154,000 Stock at cost or cost to branch (at 1 July 2007) 15.000 9.000 868,000 868,000 244.000 244,000 Additional information: Stock at 30 June 2008 was valued as follows: C Head office at cost 20,000 Branch at cost to branch 24,000 Goods in transit to branch at cost to branch 12,000 Goods purchased by the head office and sold to the branch are transferred at cost plus 20%. At 30 June 2008 the branch had transferred c 10,000 to the head office's bank account but as at that date, no record had been made in the head office's books of account Required: Prepare in adjacent columns the following: a) The head office, the branch, and the income statement for the year to 30 June 2008: and b) The head office, the branch, and the combined statement of financial position as at that date