Page 166 - Accountancy_F5
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27,800 27,800
Current liabilities
Accounts payable 5,800 400 6,200
Bank overdraft 1,350 1,350
Head office current account 8,160
FOR ONLINE READING ONLY
Total capital and liabilities 33,600 9,910 35,350
Dr Branch current account Cr
TZS TZS
LANGUAGE EDITING
“000” “000”
Balance b/d 6,800 Cash in transit 2,400
Branch profit 3,600 Goods in transit 800
Expenses paid by H.O. 960 Balance c/d 8,160
11,360 11,360
8,160
Balance b/d LANGUAGE EDITING
Dr Head office current account: TZS “000” Cr
Balance c/d 8,160 Balance b/d 3,600
Expenses paid by HO 960
Branch profit 3,600
8,160 8,160
Chapter summary
The chapter has explored into the workings of accounting for branch transactions in
relation to the head office, distinguishing between autonomous and non-autonomous
branches. It has elucidated how non-autonomous branches operate under the full
control of the head office, necessitating the preparation of transaction records solely
by the head office. Various accounts, such as branch inventory, debtors, and expenses,
are maintained to monitor branch operations and assess performance. The pricing
approach employed by the head office in transferring goods to the branch determines
the nature of information recorded in these accounts, whether at cost, selling price,
or wholesale price.
Student’s Book Form Five
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