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Probset (HOBA)
Probset (HOBA)
Probset (HOBA)
1. How much is the total adjusted balance of Home Office - Current account at the end of the current year?
ANSWER: ₱ 220,000.00
2. How much is the total unadjusted balance of Investment in Branch account at the end of the current year?
ANSWER: ₱ 190,000.00
Solution to Problem 1:
DEBIT CREDIT
Investment in Branch Home Office - Current
Unadjusted balances ₱ 190,000.00 ₱ 250,000.00
Return of inventory (20,000.00)
Inventory for Manila branch received by Makati branch 10,000.00
Inventory for Makati branch received by Marikina branch (30,000.00)
Collection of receivables of Makati branch by Manila branch (40,000.00)
Collection of receivables of the Home Office by Makati branch 60,000.00
Credit memo sent by the Home Office (30,000.00)
Erroneous recording of net income 50,000.00
Adjusted balances ₱ 220,000.00 ₱ 220,000.00
PROBLEM 2
1. Branch A
2. Branch B