Branch accounts – NBC Institute

FA – May 2013 – L1 – SB – Q6 – Accounting Concepts

This question involves preparing the current accounts, cash-in-transit and inventories-in-transit accounts, and an aggregate Statement of Financial Position for October Enterprises Limited.

Question

October Enterprises Limited has its Head office in Lokoja with branches in Ibiam and Imala. The following are the separate Statements of Financial Position of the Head Office (HO) and branches as at 31 December 2012:

Additional Information:

i. Ibiam’s current account balance with HO was arrived at after debiting ₦2,750 cash remitted to Ibiam on 31 December, which was received on 1 January the following year.
ii. Imala’s current account balance with HO was arrived at after debiting ₦8,250 value of inventories returned to Imala on 31 December, which was received in Imala on 1 January the following year.
iii. HO current account balance with Ibiam was arrived at after debiting ₦2,065 inventories returned to HO on 31 December and received in Lokoja on 5 January the following year.
iv. Imala’s current account with Ibiam was arrived at after debiting ₦4,125 inventories sent to Imala on 31 December and received in Imala on 10 January the following year.
v. HO current account with Imala was arrived at after debiting ₦13,750 cash sent to Lokoja on 31 December and received in Lokoja on 12 January the following year.

You are required to prepare:
a. Current accounts (6 Marks)
b. Cash-in-transit account (1 Mark)
c. Inventories-in-transit account (3 Marks)
d. Aggregate Statement of Financial Position as at 31 December 2012, after incorporating the above transactions. (5 Marks)

Answer

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Tags: Branch accounts, Cash-in-Transit, Consolidation, Current Accounts, Inventories-in-Transit
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2013

FA – May 2013 – L1 – SA – Q40 – Accounting Concepts

This question tests knowledge of the accounting entry for goods sent to a branch by the head office.

Question

A head office sent goods at cost plus mark-up of 25% to the branch. The invoice price of the goods was N289,200. During the period, the branch returned N10,000 worth of goods to the Head office

State the account to be credited with goods returned to Head office by the branch and at what value?

Answer

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Tags: Branch accounts, Goods Sent
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2013

FA – May 2013 – L1 – SA – Q39 – Accounting Concepts

This question tests knowledge of the accounting treatment for goods returned by a branch to the head office.

Question

A head office sent goods at cost plus mark-up of 25% to the branch. The invoice price of the goods was N289,200. During the period, the branch returned N10,000 worth of goods to the Head office

What is the value of goods that should be credited to branch account during the period?

Answer

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Tags: Branch accounts, Goods Returned
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2013

FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions

This question tests knowledge of the accounting entry to record profit loading on goods sent to a branch.

Question

The necessary accounting entry to record profit loading on goods sent to a branch by the Head Office is:

Debit | Credit
A. Branch Inventories Account | Branch Inventories Adjustment Account
B. Branch Inventories Account | Goods sent to Branch Account
C. Goods sent to Branch Account | Branch Inventories Account
D. Branch Inventories Adjustment Account | Branch Inventories Account
E. Branch Inventories Account | Goods sent to Branch Account

Answer

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Tags: Branch accounts, Profit Loading
Level: Level 1

Topic: Recording Financial Transactions
Series: MAY 2013

FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation

Prepare the trial balance of a foreign branch in Ghana cedi and the closing entries for the branch in the head office accounts.

Question

OTL Ltd commenced business on 1 January 2015. The head office is in Ghana, and there is a branch in Nigeria. The currency unit of Nigeria is the Naira (₦).

Additional Information:
The trial balance of the head office was prepared before any entries had been made in respect of any profits or losses of the branch. Remittances from head office to branch and from branch to head office were recorded in the books at the actual amounts paid and received.

The rates of exchange were:

On 1 January 2015: ₦80 = GH¢1
Average rate for year 2015: ₦70.4 = GH¢1
On 31 December 2015: ₦64 = GH¢1

Required:
i) Prepare the Trial Balance of the Nigeria branch as at 31 December 2015, in Ghana cedi.
ii) The closing entries, as at 31 December 2015, in the branch account in the books of the head office; and
iii) A summary of the Statement of Financial Position of OTL Ltd as at 31 December 2015.

Answer

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Tags: Branch accounts, consolidated financial statements, Foreign Currency Translation, Trial Balance
Level: Level 2

Topic: Group Financial Statements and Consolidation
Series: MAY 2017

FR – May 2016 – L2 – Q5 – Preparation of Financial Statements

Prepare the statement of profit or loss, statement of financial position, and current accounts for Dum and Sor's partnership.

Question

Dum and Sor were in partnership as retail traders, sharing profits and losses: Dum three quarters (3/4) and Sor one quarter (1/4). The partners were credited annually with interest at the rate of 6% per annum on their fixed capitals, but no interest was charged on their drawings. Sor was responsible for the buying department of the business, while Dum managed the head office. Sor was employed as the branch manager, and both Dum and Sor were each entitled to a commission of 10% of the net profits (after charging such commission) of the shop managed by him. All goods were purchased by the head office, and goods sent to the branch were invoiced at cost.

The following was the trial balance as at 31st December 2014:

Additional Information:

Inventory on 31st December 2014 amounted to:
- Head office: GH¢14,440
- Branch: GH¢6,570
Administrative expenses are to be apportioned between head office and the branch in proportion to sales.
Depreciation is to be provided on furniture and fittings at 10% of cost.
The provision for bad and doubtful debts is to be increased by GH¢50 in respect of head office receivables and decreased by GH¢20 in the case of the branch.
On 31st December 2014, cash amounting to GH¢2,400 was in transit from the branch to head office and had been recorded in the branch books but not in those of the head office. Goods invoiced at GH¢800 were in transit from head office to the branch and had been recorded in the head office books but not in the branch books. Necessary adjustments are to be made in the head office books.

Required:
a) Prepare the statement of profit or loss and the appropriation account for the year ended 31st December 2014, showing the net profit of the head office and branch respectively.
b) Prepare the statement of financial position as at 31st December 2014.
c) Prepare the current accounts for head office and the branch.

Answer

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Tags: Branch accounts, Current Accounts, Financial Position, Partnership Accounts, Profit appropriation
Level: Level 2

Topic: Preparation of Financial Statements
Series: MAY 2016

FA – May 2013 – L1 – SB – Q6 – Accounting Concepts

This question involves preparing the current accounts, cash-in-transit and inventories-in-transit accounts, and an aggregate Statement of Financial Position for October Enterprises Limited.

Question

Additional Information:

Answer

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Tags: Branch accounts, Cash-in-Transit, Consolidation, Current Accounts, Inventories-in-Transit
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2013

FA – May 2013 – L1 – SA – Q40 – Accounting Concepts

This question tests knowledge of the accounting entry for goods sent to a branch by the head office.

Question

A head office sent goods at cost plus mark-up of 25% to the branch. The invoice price of the goods was N289,200. During the period, the branch returned N10,000 worth of goods to the Head office

State the account to be credited with goods returned to Head office by the branch and at what value?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Branch accounts, Goods Sent
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2013

FA – May 2013 – L1 – SA – Q39 – Accounting Concepts

This question tests knowledge of the accounting treatment for goods returned by a branch to the head office.

Question

A head office sent goods at cost plus mark-up of 25% to the branch. The invoice price of the goods was N289,200. During the period, the branch returned N10,000 worth of goods to the Head office

What is the value of goods that should be credited to branch account during the period?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Branch accounts, Goods Returned
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2013

FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions

This question tests knowledge of the accounting entry to record profit loading on goods sent to a branch.

Question

The necessary accounting entry to record profit loading on goods sent to a branch by the Head Office is:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Branch accounts, Profit Loading
Level: Level 1

Topic: Recording Financial Transactions
Series: MAY 2013

FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation

Prepare the trial balance of a foreign branch in Ghana cedi and the closing entries for the branch in the head office accounts.

Question

OTL Ltd commenced business on 1 January 2015. The head office is in Ghana, and there is a branch in Nigeria. The currency unit of Nigeria is the Naira (₦).

The rates of exchange were:

On 1 January 2015: ₦80 = GH¢1
Average rate for year 2015: ₦70.4 = GH¢1
On 31 December 2015: ₦64 = GH¢1

Answer

Find Related Questions by Tags, levels, etc.

Tags: Branch accounts, consolidated financial statements, Foreign Currency Translation, Trial Balance
Level: Level 2

Topic: Group Financial Statements and Consolidation
Series: MAY 2017

FR – May 2016 – L2 – Q5 – Preparation of Financial Statements

Prepare the statement of profit or loss, statement of financial position, and current accounts for Dum and Sor's partnership.

Question

The following was the trial balance as at 31st December 2014:

Additional Information:

Inventory on 31st December 2014 amounted to:
- Head office: GH¢14,440
- Branch: GH¢6,570
Administrative expenses are to be apportioned between head office and the branch in proportion to sales.
Depreciation is to be provided on furniture and fittings at 10% of cost.
The provision for bad and doubtful debts is to be increased by GH¢50 in respect of head office receivables and decreased by GH¢20 in the case of the branch.
On 31st December 2014, cash amounting to GH¢2,400 was in transit from the branch to head office and had been recorded in the branch books but not in those of the head office. Goods invoiced at GH¢800 were in transit from head office to the branch and had been recorded in the head office books but not in the branch books. Necessary adjustments are to be made in the head office books.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Branch accounts, Current Accounts, Financial Position, Partnership Accounts, Profit appropriation
Level: Level 2

Topic: Preparation of Financial Statements
Series: MAY 2016

Question Tag: Branch accounts

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FA – May 2013 – L1 – SB – Q6 – Accounting Concepts

This question involves preparing the current accounts, cash-in-transit and inventories-in-transit accounts, and an aggregate Statement of Financial Position for October Enterprises Limited.

FA – May 2013 – L1 – SA – Q40 – Accounting Concepts

This question tests knowledge of the accounting entry for goods sent to a branch by the head office.

FA – May 2013 – L1 – SA – Q39 – Accounting Concepts

This question tests knowledge of the accounting treatment for goods returned by a branch to the head office.

FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions

This question tests knowledge of the accounting entry to record profit loading on goods sent to a branch.

FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation

Prepare the trial balance of a foreign branch in Ghana cedi and the closing entries for the branch in the head office accounts.

FR – May 2016 – L2 – Q5 – Preparation of Financial Statements

Prepare the statement of profit or loss, statement of financial position, and current accounts for Dum and Sor's partnership.

FA – May 2013 – L1 – SB – Q6 – Accounting Concepts

This question involves preparing the current accounts, cash-in-transit and inventories-in-transit accounts, and an aggregate Statement of Financial Position for October Enterprises Limited.

FA – May 2013 – L1 – SA – Q40 – Accounting Concepts

This question tests knowledge of the accounting entry for goods sent to a branch by the head office.

FA – May 2013 – L1 – SA – Q39 – Accounting Concepts

This question tests knowledge of the accounting treatment for goods returned by a branch to the head office.

FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions

This question tests knowledge of the accounting entry to record profit loading on goods sent to a branch.

FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation

Prepare the trial balance of a foreign branch in Ghana cedi and the closing entries for the branch in the head office accounts.

FR – May 2016 – L2 – Q5 – Preparation of Financial Statements

Prepare the statement of profit or loss, statement of financial position, and current accounts for Dum and Sor's partnership.

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FA – May 2013 – L1 – SB – Q6 – Accounting Concepts

This question involves preparing the current accounts, cash-in-transit and inventories-in-transit accounts, and an aggregate Statement of Financial Position for October Enterprises Limited.

You're reporting an error for "FA – May 2013 – L1 – SB – Q6 – Accounting Concepts"

FA – May 2013 – L1 – SA – Q40 – Accounting Concepts

This question tests knowledge of the accounting entry for goods sent to a branch by the head office.

You're reporting an error for "FA – May 2013 – L1 – SA – Q40 – Accounting Concepts"

FA – May 2013 – L1 – SA – Q39 – Accounting Concepts

This question tests knowledge of the accounting treatment for goods returned by a branch to the head office.

You're reporting an error for "FA – May 2013 – L1 – SA – Q39 – Accounting Concepts"

FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions

This question tests knowledge of the accounting entry to record profit loading on goods sent to a branch.

You're reporting an error for "FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions"

FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation

Prepare the trial balance of a foreign branch in Ghana cedi and the closing entries for the branch in the head office accounts.

You're reporting an error for "FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation"

FR – May 2016 – L2 – Q5 – Preparation of Financial Statements

Prepare the statement of profit or loss, statement of financial position, and current accounts for Dum and Sor's partnership.

You're reporting an error for "FR – May 2016 – L2 – Q5 – Preparation of Financial Statements"

FA – May 2013 – L1 – SB – Q6 – Accounting Concepts

This question involves preparing the current accounts, cash-in-transit and inventories-in-transit accounts, and an aggregate Statement of Financial Position for October Enterprises Limited.

You're reporting an error for "FA – May 2013 – L1 – SB – Q6 – Accounting Concepts"

FA – May 2013 – L1 – SA – Q40 – Accounting Concepts

This question tests knowledge of the accounting entry for goods sent to a branch by the head office.

You're reporting an error for "FA – May 2013 – L1 – SA – Q40 – Accounting Concepts"

FA – May 2013 – L1 – SA – Q39 – Accounting Concepts

This question tests knowledge of the accounting treatment for goods returned by a branch to the head office.

You're reporting an error for "FA – May 2013 – L1 – SA – Q39 – Accounting Concepts"

FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions

This question tests knowledge of the accounting entry to record profit loading on goods sent to a branch.

You're reporting an error for "FA – May 2013 – L1 – SA – Q20 – Recording Financial Transactions"

FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation

Prepare the trial balance of a foreign branch in Ghana cedi and the closing entries for the branch in the head office accounts.

You're reporting an error for "FR – May 2017 – L2 – Q5b – Group Financial Statements and Consolidation"

FR – May 2016 – L2 – Q5 – Preparation of Financial Statements

Prepare the statement of profit or loss, statement of financial position, and current accounts for Dum and Sor's partnership.

You're reporting an error for "FR – May 2016 – L2 – Q5 – Preparation of Financial Statements"

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