The following trial balances for the year ended 31 December 2018 were obtained from the Head...
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The following trial balances for the year ended 31 December 2018 were obtained from the Head Office and Branch of Bono Limited. Head Office Branch Debit Credit Debit Credit GHe'000 GHe'000 GHe'000 GHe¹000 54,000 10,500 Office equipment Motor vehicles Retained earnings 4,200 1,800 52,200 Current accounts 49,500 12,300 Inventory (at cost or mark up at 1/1/2018) 63,600 21,600 Goods from Head Office 55,800 Purchases 114,000 Sales 145,500 90,600 Stated capital 25,500 31,500 13,200 Administrative expenses Provision for unrealised profit 7,800 Goods sent to branch 85,800 316,800 316,800 102,900 102,900 Additional information was as follows: i) The branch deposited cash on behalf of the head office in the bank on 31 December 2018. No record of this transaction had been made in head office books. ii) All goods sold by the branch are supplied from the head office at cost plus 25%. iii) Inventories at 31 December 2018, excluding goods in transit were as follows: GHe 000 24,000 Branch at mark up Head office at cost 43,500 Required: Prepare for the head office, branch and combined entity of Bono Limited: a) Statement of profit or loss for the year ended 31 December 2018; and b) Statement of financial position as at 31 December 2018. (15 m The following trial balances for the year ended 31 December 2018 were obtained from the Head Office and Branch of Bono Limited. Head Office Branch Debit Credit Debit Credit GHe'000 GHe'000 GHe'000 GHe¹000 54,000 10,500 Office equipment Motor vehicles Retained earnings 4,200 1,800 52,200 Current accounts 49,500 12,300 Inventory (at cost or mark up at 1/1/2018) 63,600 21,600 Goods from Head Office 55,800 Purchases 114,000 Sales 145,500 90,600 Stated capital 25,500 31,500 13,200 Administrative expenses Provision for unrealised profit 7,800 Goods sent to branch 85,800 316,800 316,800 102,900 102,900 Additional information was as follows: i) The branch deposited cash on behalf of the head office in the bank on 31 December 2018. No record of this transaction had been made in head office books. ii) All goods sold by the branch are supplied from the head office at cost plus 25%. iii) Inventories at 31 December 2018, excluding goods in transit were as follows: GHe 000 24,000 Branch at mark up Head office at cost 43,500 Required: Prepare for the head office, branch and combined entity of Bono Limited: a) Statement of profit or loss for the year ended 31 December 2018; and b) Statement of financial position as at 31 December 2018. (15 m
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Step 1 The term profit and loss PL statement refers to a financial statement that summarizes the rev... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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