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Cash sent to branch to cover for:

- Rent 1,800,000
- Salaries 2,400,000
- Petty cash 1,050,000
FOR ONLINE READING ONLY
Closing balances:

- Inventory 8,310,000
- Petty cash 109,500
- Goods returned to head office 2,205,000
LANGUAGE EDITING
Required: Prepare relevant accounts in the books of the head office to reflect the
operations of the branch. Note that, goods are transferred to the branch at cost.

4. Maweni traders of Unguja has a branch in Pemba. The head office transfers
goods to the branch at cost plus 25 per cent. The branch is required to deposit
cash to the head office bank account on daily basis. All expenses are paid by
the head office through cheques except for petty cash expenses which are paid
by the branch manager.
Particulars TZS

Inventory on 1 July 2022
st
- Inventory 16,400,000
- Account receivables 6,340,000

- Furniture 4,680,000
Cash sales during the year 80,260,000

Goods invoiced to the branch 125,600,000
Credit sales during the year 74,420,000

Petty cash paid by the branch 2,090,000
Expenses paid by the head office 26,400,000

Office furniture purchase on 1 Jan. 2022 using cash collected
st
from branch sales 500,000
Closing balances:

- Inventory 19,200,000
- Account receivables 8,430,000

Student’s Book Form Five
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