Question DAY TRADERS has branches Rumigbo Rumuo... - SS3 Accounting Preparation of Branch Account And Head Office Books Question
Question:
DAY TRADERS has branches (Rumigbo, Rumuokuta, Trans-Amadi, Rumuola, and Garrison as the head branch) in Rivers State. The following trial balance shows the different branches of FLOW ENERGY for the year ending December 2022. You are required to create the accounts for the Trans-Amadi branch, and the head office in Garrison.
|
Account Title |
Rumigbo Branch (₦) |
Rumuokuta Branch (₦) |
Trans-Amadi Branch (₦) |
Rumuola Branch (₦) |
Garrison Head Branch (₦) |
Total (₦) |
|
Cash |
150,000 |
250,000 |
100,000 |
300,000 |
500,000 |
1,300,000 |
|
Accounts Receivable |
80,000 |
100,000 |
50,000 |
120,000 |
200,000 |
550,000 |
|
Inventory |
200,000 |
150,000 |
80,000 |
100,000 |
350,000 |
880,000 |
|
Equipment |
400,000 |
300,000 |
200,000 |
350,000 |
800,000 |
2,050,000 |
|
Accumulated Depreciation - Equipment |
(40,000) |
(30,000) |
(20,000) |
(35,000) |
(80,000) |
(205,000) |
|
Accounts Payable |
(70,000) |
(90,000) |
(50,000) |
(120,000) |
(200,000) |
(530,000) |
|
Salaries Payable |
(20,000) |
(30,000) |
(10,000) |
(25,000) |
(50,000) |
(135,000) |
|
Sales Revenue |
500,000 |
400,000 |
300,000 |
450,000 |
1,000,000 |
2,650,000 |
|
Cost of Goods Sold |
(300,000) |
(250,000) |
(180,000) |
(200,000) |
(600,000) |
(1,530,000) |
|
Rent Expense |
(60,000) |
(50,000) |
(40,000) |
(80,000) |
(200,000) |
(430,000) |
|
Depreciation Expense |
(20,000) |
(15,000) |
(10,000) |
(17,500) |
(40,000) |
(102,500) |
|
Salary Expense |
(80,000) |
(60,000) |
(40,000) |
(75,000) |
(200,000) |
(455,000) |
|
Total |
640,000 |
435,000 |
180,000 |
578,500 |
1,370,000 |
3,203,500 |
Answer:
Trans-Amadi Branch Account
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Cash Accounts Receivable Inventory Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries Payable Sales Revenue Cost of Goods Sold Rent Expense Depreciation Expense Salary Expense Total |
100,000 50,000 80,000 200,000 20,000 180,000 40,000 10,000 40,000 640,000 |
50,000 10,000 300,000 640,000 |
Head Office Account for FLOW ENERGY as of December 31, 2022
|
Particulars |
Debit (₦) |
Credit (₦) |
|
Cash received from Rumigbo |
50,000 |
|
|
Cash received from Rumuokuta |
60,000 |
|
|
Cash received from Trans-Amadi |
80,000 |
|
|
Cash received from Rumuola |
70,000 |
|
|
Cash sales |
100,000 |
|
|
Accounts Receivable |
60,000 |
|
|
Inventory |
150,000 |
|
|
Prepaid Rent |
50,000 |
|
|
Equipment |
400,000 |
|
|
Accumulated Depreciation |
45,000 |
|
|
Accounts Payable |
70,000 |
|
|
Wages Payable |
25,000 |
|
|
Capital |
340,000 |
|
|
Total |
940,000 |
480,000 |
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