Home Office and Branch Accounting
Home Office and Branch Accounting
1.Jargon Corporation has been operating a branch in Davao for a year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The transactions for the year are given effect to in the trial balance below:
Cash P 8,500 Home Office current P 35,000 Shipments from home office 135,500 Accounts Receivable 25,000 Sales 147,000 Expenses 13,500 _______ P 182,000 P 182,000
The branch inventory on December 31, 2007 is P 18,500
2.On January 1, 2008, the branch current account on the books of the home office should have a balance of: a. P25, 000 b.P18,000 c.P52,000 d.P35,000
3.On January 1 ,2008, the shipments to branch account of the home office books should have an opening balance of: a. P135, 000 b.P0 c.P116,500 d.P126,500
On December 31, 2007 the branch manager of Stone Company in the Comval province submitted the following data to the home office in Davao:
Petty cash fund P 3,000 Sales 195,000 Shipments from home office 135,000 Accounts receivable – January 1, 2007 43,000 Accounts receivable – December 31, 2007 49,000 Accounts Receivable written off 1,500 Inventory - January 1, 2007 37,000 Inventory – December 31, 2007 41,000 Expenses (charged by home office) 50,000
All cash collected on accounts receivable are remitted to the home office:
4.The balance of the home office current account on January 1, 2007 is: a.P72, 800 b.84, 500 c.P83, 000 d.P81, 000
5.On January 1,2007, the branch current account on the home office books would show a balance of: a. P93,000 b.P43,000 c.P95,500 d.P83,500
On December 31, 2007, the branch current account in the general ledger of the home office of Pellobelo Company shows a debit balance of P40,000.
1.Jargon Corporation has been operating a branch in Davao for a year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The transactions for the year are given effect to in the trial balance below:
Cash P 8,500 Home Office current P 35,000 Shipments from home office 135,500 Accounts Receivable 25,000 Sales 147,000 Expenses 13,500 _______ P 182,000 P 182,000
The branch inventory on December 31, 2007 is P 18,500
2.On January 1, 2008, the branch current account on the books of the home office should have a balance of: a. P25, 000 b.P18,000 c.P52,000 d.P35,000
3.On January 1 ,2008, the shipments to branch account of the home office books should have an opening balance of: a. P135, 000 b.P0 c.P116,500 d.P126,500
On December 31, 2007 the branch manager of Stone Company in the Comval province submitted the following data to the home office in Davao:
Petty cash fund P 3,000 Sales 195,000 Shipments from home office 135,000 Accounts receivable – January 1, 2007 43,000 Accounts receivable – December 31, 2007 49,000 Accounts Receivable written off 1,500 Inventory - January 1, 2007 37,000 Inventory – December 31, 2007 41,000 Expenses (charged by home office) 50,000
All cash collected on accounts receivable are remitted to the home office:
4.The balance of the home office current account on January 1, 2007 is: a.P72, 800 b.84, 500 c.P83, 000 d.P81, 000
5.On January 1,2007, the branch current account on the home office books would show a balance of: a. P93,000 b.P43,000 c.P95,500 d.P83,500
On December 31, 2007, the branch current account in the general ledger of the home office of Pellobelo Company shows a debit balance of P40,000.