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:

  1. Cash remitted by the branch on Mar 31, but received by the H.O. on Apr 2, Rs 6,000.
  2. 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.