The H.O. of a business and its branch kept their own books and prepares its own profit and loss account. The following are the balances appearing in the two sets of books as on Dec 31, 2009 after ascertainment of profit and after making all adjustments except these referred to below:

Particulars

H.O.

Branch

Dr. As

Cr. As

Dr. As

Cr. As

Capitals

5,00,000

Fixed Assets

1,80,000

80,000

Stock

1,71,000

53,700

Debtors and Creditors

39,100

19,800

24,200

9,600

Cash

53,700

7,100

Profit and Loss Account

73,300

15,300

B.O. Account

1,49,300

H.O. Account

1,40,100

5,93,100

5,93,100

1,65,000

1,65,000

Set out balance sheet of the business as on Dec 31, 2009 and the Journal entries necessary (in both the sets of books) to record the adjustments dealing with the following:

  1. On Dec 31, 2009, the branch had sent a cheque of Rs 5,000 to the H.O. and not received by H.O. not credited to branch account till Jan 5, 2010.
  2. Goods valued Rs 4,200 had been forwarded by the H.O. to branch and invoiced on Dec 29, 2009, but were not received by the branch nor dealt with in branch’s books till Jan 9, 2010.
  3. The profit shown by the branch is to be transferred to the H.O. books.
  4. Branch assets and liabilities are to be recorded in the books of the H.O.