“a * coe PRACTICAL ACCOUNTING? | nig ‘ i. HOME OFFICE AND BRANCH ACCOUNTIN y s h 9 of ive ity. i rl ae ; ‘6 , eTaike gt is sl ie oi i f a ecioosts of P 2,500" E of fs raat 2595 e id debit mes accounts iS ed * The branch wrote-off uncollectible accounts amounting to P 10,120. The allowance for doubtful ack Mt maintained in the books of the home office. The home office recorded the write-off as a write-off of accounts receivable © The branch collected accounts receivable from home office's customers amounting to , * 52,920, net of 2% cash discount. The branch treated the same transaction as if it was a collection from its Own. customers. The home office was not yet notified of the said collection It is the policy of the home office to bill its branches at 20% above cost. What is the unadjusted balance of the home office-current in the books if Naga branch in December 31,2014. seses, ‘332,10 CD : : 36,000 + (10.1209 iz . 53,9! 52. \ SCUTIO ‘Soh, AID f a. 463,650 b. 459,070 c. 475, d. 461,490 s r (~ 3 Red Company had an agency in Davao. For the period just ended, the agency transaction showed the following:2. SRO < Zee Salaries and commissions Rent Advertising supplies 9,000 - ex = one 10,000- k= Yi ogee gy -ntories OF 5 ‘expenses 5,000 won Ses) = ere were IVEDIOT od agency had P100,000 receivable and P50 00 paytbis St ofthe nF da. Also, there Wer one perio’ hand of P90,000 and unused advertising supplies of P6,000. The agency me would be closed if losses were incurred. The agency should: a. Review again because it was a break even operation. te b. Close with the period's operational loss of P155,000. c. Close with the period's operational loss of P9,000. : d. Continue with the period's profit of P25,000. a soe saraples COstDE On December 1, 2013, the Raffy Company established an agency in Las Pinas, sending its Te ‘December, the agency P15,750 and a working fund of P9,000 to be maintained on the imprest basis. During the mont) ‘Atome office transmitted to the home office sales orders which were billed at P64,380 of which P20,400 was = ee 00 10 be uisition of furniture and fixtures for Las Pinas, © OF the home of P3,815 and received replenishment there! 075. It was estimated that the gross Pro! disbursement chargeable to the sales agency is the acai depreciated at 24% per annum. The agency paid expenses of P3815 00 office. On December 31, 2013, the agency iain ed at i i sales orders average 25% o Pe rey vneonne of the agency for the month ended December 31, 2013? oR ‘a. 2,886 c. 3,386 : fret, Inome. Se : et d. (2,614)at Oe e ecemebe 31200 branch o” . Ws to ™ Avome oti inventory shipment tothe branch of 45:00 2 1 aap is mount 0 ofice ‘sfered shipments tothe branch teow Miocated 1/8 of ised = is wy located is he ome ofc sure 12000 of aeiing xpense I aee per 23, ‘evember 21,2008, The bch in adertsing recorded af ofthe advertising, + ection in Deoem™ uring the year. ESer teat no 10S {fs cash collection ie. 5 home office customer remit 000 to branch Te branch ror 1913008. The bili 008. Menawiile, back atthe home office, no entry has been made yet./ December !13 oop = Tnventory costing P11,500 was returned by the branch tothe home office on PE Fee 74.000), ‘cos, but the home office recorded the transaction at P1,150."° very "(50M 2: (4,500) C Compute the unadjusted balance ofthe House Office account as of December 31, 2008: 3000 a ) a P 382,650 ©. P396,150 wae b.-P369,150 4. P416,850 ‘bras its branch. The branches ©)The following information are extracted from the books and records of Nikky Company and its 1s i are at December 31, the fourth year of the company’s operations, or 5 HO Books Branch Books ty ¥0 6 Beth Sales P 200,000 nent’ “SOK = ‘Shipments to branch at cost P 60,000, e BOF Shipments from home office at billed price 80,000 =e Se Purchases 30,000 Tors NOK ae Operating expenses = ¢ vee sk KY Cot). We 1oSk Se Inventory, Jefiuary 1 on_ From Office at billed price 20,000 GO era, eee Froproutsiders 4,000 Unrealized intercompany profit 24,000 ecco shipments in transit between the home office andthe branch, Both shipments accounts are properly recorded. Feeding ventory includes merchandise acquired from the home ofice nthe amount of F20,000 and Pe 000seqeired > fom outsiders. The branch rent forthe ast quare at P50 per month was paid by the heme office andthe brsch oe not properly notified. The true net income of the branch is W003 = is Soles 200K ert = $00x3 = 4500, | 0,000 . % _ ae) b. a ae. wk $y Dthe gross in Ps thi ion was: Te ©. : s of i ee to trem -b.P45,000\ P54, 800 5 Nona Trading Co, operates a branch in Hocos. At close cof ioe We “Home office credit memo for P17,150 was not recorded by the branch. a fh 33,0 XD = «Ilocos recorded a debit memo from office of P28,360 as P23,860. a o>) Hoos (~ \4s0)) +The home office inadvertently recorded remittance for P19,000 from its Hoilo Branch as a {remittance en ooo Branch. ah vost ata) | ty -toc Prace C How much is the unadjusted balance of the Home Office Current account? (Sy gi ro), ¢ fuer) \ 4. 162,000 c. — PI74,650 a WN b. 124,000 4. -4,P136,650 ~ wai Te2.cGg WARBO NeKeOD | Ram Company bls its Kalibo Branch for merchandise shipments at 125% of cost. As of eit-Hf date, December 31, 2005 the following data were available. * Mase. Purchased | Mase. From office (at from outsiders \ Billed price) Total \ aR iat de tena a etB a amittance for P194! ount? 4650 ci pee a \ How much is the unadjusted hale ' Current PITA OO 50 ipgaate: = P 162,000 SG. P1365), acoso : 124,000 3. osm of Ot Ram c ° st 1255 the fon any dills its Kalibo Branch for merchandise shipments purchased Howing data were available Mase. Totals P 2,340,000 2,340,000 con the books D_ The branch inventory on December 31, 2008 is P260,000. On January 1,209, the Branch Current account of the Home Office should have a balance of? [A] 750,000 [B] 755,000 inven net income of the A 15) The branch inventory on December 31, 2008 is P260,000. On December 31, 2008, compute the branch. [A] 360,000 [B] 365,000 {[C] 370,000A.P8,030 B.P30,360 C. P2,330 D. P23,430 ‘The Smurfs Company operates a branch in Las Vegas. follow: re Home Office Branch of Sales P 256,000 P 78,500 osam" 210,000 20,000 rex pct” CK Purchases from outsiders A Shipments to branch: 130. Cost to home office 30,000: ae gcten( ASK oa Billing price to branch 40,000 eee a Expenses 60,000 12,500 Specses (0K + 207) Inventories, January 1, 2008: wag: ~ (WOK + ISAO, Sy sors Home office acquired from outsiders, at cost £0,000 aan: +729) —S600 Branch: TON i sao) ‘Acquired from outsiders, at cost 7,500 Bra (SSKIERON | (yoorm)) (SIE Acquired from home office, at billed price oes * 25's 93,009, (which averaged 22 % above cost) 24,500 a 7,00. Inventories, December 31, 2008: Expenses, (Lok 4 500) SES Hes Otses acquired from outsiders, at cost55,000 combined net Wore, aD ‘Acquired from outsiders, at cost 5,500 Acquired from home office, et 2008 billed price 26,000 A |7)Determine the Branch December 31, 2008 Inventory at cost. [A] 25,000 {C] 27,000 [B] 26,000 [D] 28,000. & 18)Determine the combined net income (loss) of the home office and the branch for the year 2008. [C1 4,365 [A] 4,415 1R14.500 [D] 4,200.ders, at costS5,000 Acatired from outsiders, at cost 5500 Savired from home office, ot 2008 billed price 264 A. 1))Determine the Bran: 'ch December 31, 2008 Inventory at cost. 141 25,000 1) 27,000 i 18} 26.000 > 18)Determine the {1D} 28,000. 2008. ‘Sombined net income (loss) of the home office and the branch for the ye8 Tal 4415, {1.4365 asin 181 4'500 Hoo at the end of Fist months POPES ggg. Eimeasinan branch was billed by home office for merchandise at 140% of cost. Ai tin ond PB 9BEN yaneh submitted among other tines the following data: Merch, from home office at billed price) ag 200 — Penchssed locally by branch 40,000 nto ee Btery, Dec. 31 of which P7,000 are of local purchase28,000 0" ggq00 ou sales for the month 180,000 a acct ‘Bhs branch inventory at cost should be recorded at: wo ©: AP 20,000 3090 B. P22.000 22,002 .P 21,000 =< s D. P28,000 31 2010 after its B 20) ‘The Baguio branch of Monique Company submitted the following trial balances as of December First year of operations: ar or Cash P 10,400 Accounts receivable 63,200 Shipments from home office 168,000 Expenses 10,800 Sales P 134,400 Home office current ___118,000 Total P 252,400 P 252,400 Merchandise inventory, P50,400 Shipments to the branch are billed at 140% of cost 48.Determine the Ae PO overstatement of the branch inventory at December.21,2010 B. P14,400 —C. P6,000 D.P33,600 we, 7, PO 4co al wor. (40,000) cs® ep oy 33,000 oun a 2500 ) = sates, ot sd (9042170) oe Exgenses “eve NE tame