Ashok Ltd. has its H.O. in Chennai and a Branch in Delhi where as separate set of books are used. The following are the trial balances extracted on Mar 31, 20.
|
Particulars |
H.O. |
Branch |
||
|
Dr. Rs |
Cr. Rs |
Dr. Rs |
Cr. Rs |
|
|
Share Capital (Authorised 2,00,000 |
– |
16,00,000 |
||
|
Equity Shares of Rs 10 each) |
||||
|
Issued: 1,60,000 Equity Shares |
||||
|
Profit and Loss Account (Apr 1, 20-) |
– |
50,620 |
– |
|
|
Interim Dividend paid during the Year |
60,000 |
– |
– |
|
|
General Reserve |
– |
2,00,000 |
– |
|
|
Current Assets |
4,44,940 |
– |
– |
– |
|
Fixed Assets |
10,60,000 |
– |
1,90,000 |
– |
|
Debtors and Creditors |
1,01,000 |
43,800 |
38,200 |
20,800 |
|
Profit for the Year |
– |
1,64,400 |
– |
63,400 |
|
Cash Balance |
1,25,460 |
– |
13,100 |
– |
|
Current Account |
2,67,420 |
– |
1,00,920 |
2,58,020 |
|
20,58,820 |
20,58,820 |
3,42,220 |
3,42,220 |
|
The difference between the balances of the current account in the two sets of books is accounted for as follows:
- Cash remitted by the branch on Mar 31, but received by the H.O. on Apr 2, Rs 6,000.
- Stock stolen in transit from H.O. and charged to the branch by the H.O. but not credited to H.O. in the branch books as the branch manager declined to admit any liability (not covered by insurance) Rs 3,400.
You are required to prepare the Branch Current Account in the H.O. books after incorporating Branch Trial Balance through Journal. Also prepare the company’s Balance Sheet as on Mar 31, 2014.