A trader of Chennai had a branch in Kolkata. The branch gets goods partly from Chennai H.O. and partly from outsiders. The branch keeps a separate set of books. The following balances were extracted.
|
Chennai H.O. |
Kolkata Branch |
|||
|
Dr. (Rs) |
Cr. (Rs) |
Dr. (Rs) |
Cr. (Rs) |
|
|
Capital |
2,00,000 |
|||
|
Plant and Machinery |
1,40,000 |
|||
|
Furniture and Fixtures |
25,000 |
12,500 |
||
|
Loose Tools |
20,000 |
9,000 |
||
|
Profit and Loss Account |
||||
|
Jan 1, 2008 |
17,500 |
|||
|
Debtors and Creditors |
1,15,000 |
27,500 |
5,000 |
12,500 |
|
Cash in Hand |
2,500 |
1,400 |
||
|
Cash at Bank |
7,500 |
3,000 |
||
|
Purchase and Sales |
3,00,000 |
4,05,000 |
56,000 |
1,22,500 |
|
Salaries and Wages |
15,000 |
8,000 |
||
|
Rent |
7,500 |
4,250 |
||
|
General Expenses |
2,500 |
3,750 |
||
|
Goods from H.O. to Branch |
45,000 |
40,000 |
||
|
Current Account |
35,000 |
27,900 |
||
|
Opening Stock |
25,000 |
20,000 |
||
|
(Jan 1, 2008) |
||||
|
6,95,000 |
6,95,000 |
1,62,900 |
1,62,900 |
|
The difference between the balances of H.O. Current Account and Branch Account is due to goods and cheques in transit as at the date of preparation of Trial Balance. Tent of B.O. remains unpaid Rs 75. Plant, furniture and loose tools are to be depreciated at 10% p.a., 15% p.a. and 20% p.a., respectively. Stocks in trade valued on Dec 31, 2008 were as follows:
H.O.: Rs 32,500
B.O.: Rs 17,500
Prepare a Combined Trading and Profit and Loss Account for the year ending on Dec 31, 2008 and a Balance Sheet on that date.