Preparation of Branch Account And Head Office Books - SS3 Accounting Lesson Note
Question:
DAY TRADERS has branches in 5 cities in Nigeria, namely: Lagos, Kaduna, Kano, Port Harcourt, and their head office in Abuja. The following trial balance shows the different branches of DAY TRADERS for the year ending December 2021. You are required to create the accounts for the Port Harcourt branch, and the head office in Abuja.
TRIAL BALANCE FOR DAY TRADERS FOR THE YEAR ENDED DECEMBER 2021:
|
Account Title |
Abuja HEAD OFFICE (₦) |
Lagos Branch (₦) |
Kaduna Branch (₦) |
Kano Branch (₦) |
Port Harcourt Branch (₦) |
Total (₦) |
|
Cash |
25,000 |
40,000 |
15,000 |
30,000 |
20,000 |
130,000 |
|
Accounts Receivable |
50,000 |
80,000 |
60,000 |
45,000 |
75,000 |
310,000 |
|
Inventory |
100,000 |
150,000 |
90,000 |
120,000 |
180,000 |
640,000 |
|
Equipment |
250,000 |
300,000 |
200,000 |
350,000 |
400,000 |
1,500,000 |
|
Accounts Payable |
70,000 |
90,000 |
80,000 |
60,000 |
100,000 |
400,000 |
|
Salaries Expense |
40,000 |
50,000 |
30,000 |
60,000 |
80,000 |
260,000 |
|
Rent Expense |
60,000 |
80,000 |
50,000 |
70,000 |
90,000 |
350,000 |
|
Advertising Expense |
30,000 |
40,000 |
25,000 |
35,000 |
45,000 |
175,000 |
|
Utilities Expense |
20,000 |
30,000 |
15,000 |
25,000 |
35,000 |
125,000 |
|
Sales Revenue |
500,000 |
800,000 |
600,000 |
450,000 |
750,000 |
3,100,000 |
|
Interest Revenue |
5,000 |
10,000 |
6,000 |
8,000 |
12,000 |
41,000 |
|
Interest Expense |
3,000 |
5,000 |
4,000 |
6,000 |
8,000 |
26,000 |
|
Total |
1,153,000 |
1,675,000 |
1,165,000 |
1,209,000 |
1,775,000 |
7,977,000 |
Answer:
Port Harcourt Branch Account
As of December 31, 2021
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Cash Accounts Receivable Inventory Equipment Sales Revenue Accounts Payable Salaries Expense Rent Expense Advertising Expense Utilities Expense Interest Revenue Interest Expense Total |
20,000 75,000 180,000 400,000 80,000 90,000 45,000 35,000 8,000 913,000 |
750,000 100,000 12,000 862,000 |
Head Office Account as of December 31, 2021
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Cash (Abuja Branch) |
25,000 |
|
|
Accounts Receivable (Abuja Branch) |
50,000 |
|
|
Inventory (Abuja Branch) |
100,000 |
|
|
Equipment (Abuja Branch) |
250,000 |
|
|
Cash (Lagos Branch) |
40,000 |
|
|
Accounts Receivable (Lagos Branch) |
80,000 |
|
|
Inventory (Lagos Branch) |
150,000 |
|
|
Equipment (Lagos Branch) |
300,000 |
|
|
Cash (Kaduna Branch) |
15,000 |
|
|
Accounts Receivable (Kaduna Branch) |
60,000 |
|
|
Inventory (Kaduna Branch) |
90,000 |
|
|
Equipment (Kaduna Branch) |
200,000 |
|
|
Cash (Kano Branch) |
30,000 |
|
|
Accounts Receivable (Kano Branch) |
45,000 |
|
|
Inventory (Kano Branch) |
120,000 |
|
|
Equipment (Kano Branch) |
350,000 |
|
|
Port Harcourt Branch Account |
862,000 |
|
|
Accounts Payable |
400,000 |
|
|
Salaries Expense |
260,000 |
|
|
Rent Expense |
350,000 |
|
|
Advertising Expense |
175,000 |
|
|
Utilities Expense |
125,000 |
|
|
Sales Revenue |
3,100,000 |
|
|
Interest Revenue |
41,000 |
|
|
Interest Expense |
26,000 |
|
|
Total |
1,215,000 |
4,903,000 |