Page 171 - Accountancy_F5

Branch current account 360,000
Head office current account 305,000
Unrealised profit from inventory 50,000

Cash at bank 140,000 5,000
Opening inventory (at mark-up price) 200,000 110,000
FOR ONLINE READING ONLY
Branch expenses 150,000 45,000

2,250,000 2,250,000 855,000 855,000

Other information:
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(i) Closing inventory on 31 Dec. 2021 (at mark-up price):
st
At head office TZS 225,000,000 and at branch TZS 143,000,000.

(ii) Goods sent to branch on 15 Dec. 2021 were in transit, valued at TZS 50,000,000
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(at mark-up); and the branch returned goods to the head office valued at TZS
5,000,000 on 15 Dec. 2021 were still on transit.
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(iii) Cash from the branch to the head office was still in transit on 31 Dec. 2021.
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(iv) Head office paid TZS 15,000,000 on behalf of the branch. This was included in
head office expenses.

(v) Depreciation on non-current assets is charged at 20 per cent per annum on cost.

Required: Prepare separate accounts for the head office and the branch for the whole
business.

Student’s Book Form Five
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