Page 151 - Accountancy_F5

In the books of Kasa Ltd
Dr Branch inventory account (at selling price) Cr
At selling At cost At selling At cost
Price price TZS “000”
Particulars TZS Particulars
TZS TZS (unsold
“000” “000” “000” items only)
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Balance b/d: Cash remittance to head office:

Inventory 9,000 6,750 From cash sales 23,000 23,000

Accounts 2,000 2,000 From debtors 14,500 14,500
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receivable
Goods from 36,000 27,000 Balance c/d:
the head
office

Inventory 8,000 6,000
Accounts 1,500 1,500
receivable

Branch 9,250
profit
47,000 45,000 47,000 45,000

In some cases, there are expenses incurred for branch operations and the branch manages
some assets (including petty cash). When determining branch profit or loss through
the branch account, such items should be taken into account. The general format of a
columnar branch account in the books of the head office would be as follows:

Student’s Book Form Five
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