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Depreciation of furniture is charged at 10% using the straight-line method.

Required: Prepare a branch account in the books of the head office taking into account
the above information.
5. Show the accounting entries that the Head Office would make to record the
following transactions in their books.
FOR ONLINE READING ONLY
(a) The head office instructed Unguja branch to transfer goods amounting
to TZS. 10,000,000 to Dar es Salaam.
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(b) Depreciation charge of branch fixed assets amounting TZS 2,000,000
while such assets’ accounts are opened and maintained at the head office
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books.

(c) A remittance of TZS 30,000,000 was made by the Dodoma branch to
the head office on 24 December 2021 but received by head office on
th
January 4, 2022.
(d) Goods of TZS 100,000,000 were sent by the head office on 27 December
th
2021 but received by the Dodoma branch on 5 January 2021.
th
6. Sanga Enterprise has its head office in Dar es salaam and a branch at Mwanza.
All purchases are made at the head office and invoiced to the branch at cost plus
10 per cent. The following are the trial balances of both, the head office and its
branch as at 31 Dec. 2021.
st
Head Office Branch
Dr Cr Dr Cr

TZS “000” TZS TZS TZS
“000” “000” “000”

Capital 450,000
Furniture and fittings 75,000 15,000
Accounts receivable 125,000 35,000
Accounts payable 75,000

Purchases/sales 1,200,000 1,000,000 550,000
Goods sent to the branch (at mark-up 375,000
price)

Goods received from head office (at 320,000
mark-up price)
Cash from the branch 300,000

Cash to the head office 325,000

Student’s Book Form Five
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