AG Ltd operates a head office in ibadan and a branch at ilesa. all goods...

AG Ltd operates a head office in ibadan and a branch at ilesa. all goods are purchased by the head office and sent to ilesa at cost plus 12.5. all sales at the branch are for cash. after meeting sundry local expenses all cash is remitted to ibadan. the stock at ilesa on January 1 1992 amounted to #9360. a summary of the branch returns was as follows for the period ended 31st May 1992
goods sent to the branch at selling price #100080
goods returned to Lagos at selling price #1008
cash remitted to Lagos #97200
reduction in selling price #1098
sundry expenses account #1944
goods invoiced to ilesa at #540 on 31st May 1992 were not received until 5th June 1992. the stock of goods at the branch on 31st May 1992 amounted to #7380 at the invoiced price and cash remitted to ibadan of #36 on 29th May 1992 was received on 8th June 1992. for the system of accounting the head office used the memorandum column method for recording branch transaction
you are required to prepare;
a. branch accounts in the head office books including the necessary account
b. the profit and loss account for the period ended 31st May 1992?

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Asked by Favour on 28th January, 2024