POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
College of Accountancy and Finance
HOME OFFICE, BRANCH AND AGENCY ACCCOUNTING
AGENCY
Agencies are established to display merchandise and to take customers’ order but they don’t stock merchandise to fill
their orders or to pass on customers’ credit. Agencies are given only samples of merchandise to display. Agencies are
not required to have a complete accounting system. They keep only records of cash receipts and disbursements.
Proforma Entries:
No
Transactions
1
Establishment of Working Fund
2
Shipment of Samples
3
Receipts of orders from customers
4
Cost of sales associates with agency sales
5
Replenishment of Working Fund
6
Adjustment of Samples
7
Payment of agency expenses by home office
8
Closing of Revenues and Expense
9
Closing of Agency Income to Retained Earnings
Home Office Books
Working Fund – Agency
xxx
Cash
xxx
Samples – Agency
xxx
Shipment to Agency
xxx
Accounts Receivable
xxx
Sales – Agency
xxx
Cost of Sales
xxx
Shipment to Agency
xxx
Expenses - Agency
xxx
Cash
xxx
Expenses – Agency
xxx
Samples – Agency
xxx
Expenses – Agency
xxx
Cash
xxx
Sales – Agency
xxx
Cost of Sales – Agency
xxx
Expenses – Agency
xxx
Agency Income
xxx
Agency Income
xxx
Retained Earnings
xxx
PROBLEM 1
PUP Company put up an agency in Sta. Mesa and had the following transactions with Sta. Mesa agency for the month of
January:
• PUP Company transferred merchandise to Sta. Mesa agency to be used as samples - P13,000 and P10,000 as
working fund.
• Receipts of sales order from the agency – P130,000.
• Collection of agency accounts by the home office – P91,000.
• PUP Company paid P11,700 for agency expenses.
• Replenishment of the agency working fund upon receipt of expense vouchers – P6,850.
• Cost of goods sold identified with the agency sales – P93,000.
• Appraised value of the samples at the end of the month is estimated to be P8,000.
Determine the following:
a. Net Income (Loss) of the agency
b. Entries to record the transactions in the books of PUP Company and Sta, Mesa Agency
HOME OFFICE AND BRANCH ACCOUNTING
Branches stock merchandise coming from the home office or acquired from other suppliers, make sale to customers,
pass on customer’s credit, collect receivables, incur expenses and perform other functions normally associated with
the operations of a separate entity. Branches have their own books of accounts and prepare financial statements and
submit them to home office for consolidation.
Proforma Entries
No
Transactions
1
2
3
4
5
6
Cash sent by Home Office to Branch
Merchandise sent by Home Office to
Branch
Merchandise returned by Branch to
Home Office
Cash remitted by Branch to Home
Office
Fixed assets purchased by Home
Office for the Branch (records are
kept by Home Office)
Fixed assets purchased by Home
Office for the Branch (records are
kept by Branch)
Home Office
Branch
Cash
Branch
Shipment to Branch
Shipment to Branch
Branch
Cash
Branch
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Fixed Assets
Cash
xxx
Branch
Cash
xxx
xxx
xxx
Branch
Cash
Home Office
Shipment from HO
Home Office
Home Office
Shipment from HO
Home Office
Cash
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Memorandum Entry
Fixed Assets
Home Office
xxx
xxx
Adjusting entry for the depreciation in
No. 5
Adjusting entry for the depreciation in
No. 6
Fixed assets purchased by Branch
(records are kept by Home Office)
Accounts payable of Branch paid by
Home Office
Accounts receivable of Home Office
collected by Branch
Branch expenses paid by the Home
Office
Branch expenses charged by Home
Office
7
8
9
10
11
12
13
Branch
Accum. Depreciation
xxx
xxx
No Entry
Fixed Assets
Branch
Branch
Cash
Branch
Accounts Receivable
Branch
Cash
Branch
Expenses
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Depreciation Expense
Home Office
Depreciation Expense
Accum. Depreciation
Home Office
Cash
Accounts Payable
Home Office
Cash
Home Office
Expenses
Home Office
Expenses
Home Office
PROBLEM 2
Home office and branch accounts of CAF Company show activities for the month of February:
HOME OFFICE
Cash remitted
42,000 Beginning Balance
Merchandise returned by HO
3,000 Shipment at cost
Fixed assets charged to HO
5,000 Expense allocated from HO
HO note collected with interest
BRANCH
15,000 Branch remittance
37,000 Fixed assets purchased by branch
15,400
2,000
Beginning Balance
Shipment at cost
Expense allocated to Branch
Note collected by branch
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
15,000
32,000
14,500
2,100
36,000
5,000
Except for a branch error in recording expense allocations and home office error in not recording interest, all
differences in the accounts are due to timing differences in recording reciprocal information.
Determine the following:
a. Unadjusted and adjusted balance of the Home Office Account
CLOSING ENTRIES
Proforma Entries
No
Transactions
1
To close the balance of revenue and
expenses accounts
2
To close the branch net profit to the
HO account
3
To record income taxes
To close the branch income to Income
Summary
To close the combined net income to
Retained Earnings
4
5
Home Office
Inventory, end
xxx
Sales
xxx
Shipment to Branch
xxx
Inventory, beg
xxx
Purchases
xxx
Expenses
xxx
Income Summary
xxx
(already recorded as an adjusting
entry)
Income Tax Expense
xxx
Income Tax Payable
xxx
Branch
xxx
Income Summary
xxx
Income Summary
xxx
Retained Earnings
xxx
Branch
Inventory, end
Sales
Inventory, beg
Shipment from HO
Purchases
Expenses
Income Summary
Income Summary
Home Office
No Entry
No Entry
No Entry
CONSOLIDATION OF FINANCIAL STATEMENTS
Consolidation Procedures:
1. Combine like items of assets, liabilities, equity, revenues and expenses of the home office and branch.
2. Eliminate inter-company transactions.
• Eliminate home office and branch account.
Home Office
xxx
Branch
xxx
•
Eliminate merchandise shipment accounts.
Shipment to Branch
xxx
Shipment from HO
xxx
•
Eliminate allowance for overvaluation of inventory.
Allowance for overvaluation
xxx
Inventory
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
•
Eliminate intercompany sales and purchases.
Sales
xxx
Cost of Sales
xxx
•
Eliminate intercompany payables and receivables.
Accounts Payable
xxx
Accounts Receivable
xxx
PROBLEM 3
The unadjusted trial balance of the Home Office and Branch as of December 31, 2017 is as follows:
Accounts
Home Office
Branch
Cash
116,000
31,250
Accounts Receivable
104,250
63,000
Inventory
200,600
0
Branch
196,500
0
Furniture and Fixtures
100,000
40,000
Accumulated Depreciation
22,000
0
Accounts Payable
112,750
51,250
Home Office
0
196,500
Share Capital
250,000
0
Retained Earnings
302,100
0
Sales
525,000
330,000
Shipment to Branch
251,000
0
Purchases
612,500
112,500
Shipment from HO
0
251,000
Operating Expenses
133,000
80,000
Total
1,462,850
1,462,850
577,750
577,750
Adjustments:
• Depreciation Expense: Home Office – P5,900; Branch – P3,250
• Inventory, end: Home Office – P242,500; Branch – P117,500
Determine the following:
a. Adjusting Entries on both books
b. Closing Entries on both books
c. Elimination Entries
d. Net Income of Home Office
e. Net Income of Branch
f. Consolidated Net Income
SHIPMENT TO BRANCH AT ABOVE COST
Proforma Entries
Home Office
Branch
Shipment to Branch
Allowance for Overvaluation
Branch
xxx
xxx
xxx
Shipment from HO
Home Office
xxx
xxx
The billed price is either:
• Based on sales (gross profit rate)
• Based on cost (mark-up rate)
PROBLEM 4
BSA Company operates a branch in Cebu City. Operating data for the home office and branch:
Home Office
Branch
Sales
300,000
78,500
Purchases from outsiders
210,000
20,000
Shipment to Branch/from HO
30,000
40,000
Expenses
60,000
12,500
Inventory, 01/01/2017:
From outsiders
80,000
7,500
From home office
0
24,500
Inventory, 12/31/2017:
From outsiders
55,000
5,500
From home office
0
26,000
Determine the following:
a. Inventory on January 1 and December 31 at cost
b. Cost of Sales of the Branch at cost
c. True income of the Branch
d. Consolidated net income
PROBLEM 5
The income statement submitted by Branch to the Home Office for the month of January is as follows:
Sales
600,000
Less: Cost of Sales
Inventory, Jan 1
80,000
Shipment from HO
350,000
Purchases
30,000
Inventory, Jan 31
(100,000)
360,000
Gross Profit
240,000
Less: Operating Expenses
180,000
Net Income (Loss)
60,000
The inventory of the branch consisted of:
January 1
From home office
70,000
From outsiders
10,000
January 31
84,000
16,000
After effecting necessary adjustments, the home office ascertained that the net income of the branch should be
P156,000.
Determine the following:
a. Percentage of billing by home office
b. Allowance for overvaluation of inventory
PROBLEM 6
Duterte Company has a branch in Davao City. Davao branch receives all its merchandise from Duterte at 25% above cost
and sells them at 40% mark-up on cost. Duterte also sells merchandise to outsiders at 40% above cost. Below are the
excerpts from the trial balance of Duterte and Davao branch:
Home Office
Branch
Sales
5,880,000
3,360,000
Purchases
6,250,000
Inventory, beginning
350,000
200,000
Shipment to Branch
2,000,000
Shipment from HO
2,375,000
Allowance for overvaluation
540,000
Operating Expenses
1,200,000
325,000
Determine the following:
a. Inventory of branch on December 31
b. Consolidated inventory
c. True income of the branch
d. Consolidated Net Income
e. Allowance for Overvaluation
PROBLEM 7
SM Company just opened a branch in Baguio City this February of the current year. Summary of transactions for the 1st
month of operations follows:
1. Baguio Branch received P15,750 cash from home office to start its operations.
2. Home office shipped merchandise to the branch costing P100,000 at 25% mark-up on cost, of which 20% have
not yet received by the branch.
3. Branch purchases from other suppliers amounted to P89,250.
4. Branch sales for the month amounted to P245,000.
5. Home office debit memo for P3,500 representing the branch’s share on advertising expenses was recorded only
by the branch on the 3rd day of March.
6. Branch operating expenses of P61,250 were paid by the home office.
7. Branch remitted P29,750 to the home office but the home office recorded it only in March.
8. The inventory on hand of the branch is: from outsider – P21,000 and from HO – P37,500.
Determine the following:
a. Unadjusted and adjusted balance of Home Office account
b. Unadjusted and adjusted balance of Branch account
c. Net Income reported by the Branch
d. True Income of the Branch
PROBLEM 8
The Manila branch of Pacman Company is billed for merchandise at 20% gross profit rate. The branch sells them at 25%
above cost. On March 17, the entire branch’s merchandise was destroyed by fire. The branch records that were
recovered show:
Inventory, beginning (at billed price)
165,000
Shipment, Jan 1 – March 17 (at billed price)
100,000
Purchases from outsiders – all were sold at 20% mark-up on cost
7,500
Sales
169,000
Sales returns
3,750
Determine the following:
a. Branch beginning inventory at cost
b. Cost of merchandise destroyed by fire
INTER-BRANCH TRANSFER OF MERCHANDISE WITH EXCESS FREIGHT
There are instances when home office finds it necessary to authorize the transfer of merchandise from one branch to
another branch. Since branches receiving shipments are properly charged with freight and freight is properly accounted
as inventoriable cost, any excess freight should be absorbed by the home office and treated as an operating expense.
On the other hand, any reduction in freight is treated as savings by the home office.
PROBLEM 9
The Home Office shipped merchandise to Baguio Branch costing P10,000 and paid a freight of P650. Baguio Branch was
subsequently instructed to transfer merchandise to Laoag Branch wherein Baguio Branch paid P200 freight. If the
shipment was directly shipped from Home Office to Laoag Branch, the freight cost would have amounted to P700.
Determine the following:
a. Entries to record the transactions
b. Entries to record the transactions assuming the freight from Home Office to Laoag is P1,000.
PROBLEM 1
a Sales
Less: Cost of Sales
Gross Profit
Less: Expenses
Various Expenses
Expenses from WF replenishment
Samples
Net Income
b
Samples - Agency
Working Fund - Agency
Shipment to Agency
Cash
130,000.00
93,000.00
37,000.00
11,700.00
6,850.00
5,000.00
23,550.00
13,450.00
13,000.00
10,000.00
13,000.00
10,000.00
To record samples and working fund.
Accounts Receivable
Sales - Agency
130,000.00
130,000.00
To record sales.
Cash
Accounts Receivable
91,000.00
91,000.00
To record collection.
Expenses - Agency
Cash
11,700.00
11,700.00
To record expenses.
Expenses - Agency
Working Fund - Agency
6,850.00
6,850.00
To record WF replenishment.
Cost of Sales - Agency
Shipment to Agency
93,000.00
93,000.00
To record cost.
Loss
Samples - Agency
5,000.00
5,000.00
To record decline in value of samples.
PROBLEM 2
a
Beginning Balance
Shipment
Expense allocation
Note collected by branch
Branch remittance
FA purchased by branch
Merchandise returned by branch
Unadjusted Balance
Unadjusted Balance
Adjustments:
Shipment
Expense allocation
Note collected by branch
Branch remittance
FA purchased by branch
Merchandise returned by branch
Adjusted Balance
PROBLEM 3
a ADJUSTING ENTRIES:
Home Office Books
Depreciation Expense
Branch Account
15,000.00
37,000.00
15,400.00
2,000.00
(36,000.00)
(5,000.00)
28,400.00
28,400.00
100.00
(6,000.00)
(3,000.00)
19,500.00
5,900.00
HO Account
(15,000.00)
(32,000.00)
(14,500.00)
(2,100.00)
42,000.00
5,000.00
3,000.00
(13,600.00)
(13,600.00)
(5,000.00)
(900.00)
(19,500.00)
Accumulated Depreciation
5,900.00
To record depreciation.
Ending Inventory
Begininng Inventory
Income Summary
242,500.00
200,600.00
41,900.00
To record and adjust inventory.
Branch Books
Depreciation Expense
Accumulated Depreciation
3,250.00
3,250.00
To record depreciation.
Ending Inventory
Begininng Inventory
Income Summary
117,500.00
117,500.00
To record and adjust inventory.
b
CLOSING ENTRIES:
Home Office Books
Sales
Shipment to Branch
Purchases
Operating Expenses
Depreciation Expenses
Income Summary
525,000.00
251,000.00
612,500.00
133,000.00
5,900.00
24,600.00
To close revenue and expenses.
Branch
Income Summary
750.00
750.00
To close branch income.
Income Summary
Retained Earnings
67,250.00
67,250.00
To close income summary.
Branch Books
Sales
Income Summary
Shipment from HO
Purchases
Operating Expenses
Depreciation Expenses
330,000.00
116,750.00
251,000.00
112,500.00
80,000.00
3,250.00
To close revenue and expenses.
Income Summary
Home Office
750.00
750.00
To close income summary.
c
ELIMINATION ENTRIES:
Home Office
Branch
197,250.00
197,250.00
To eliminate HO and branch account.
Shipment to Branch
Shipment from HO
251,000.00
251,000.00
To eliminate shipment account.
d
e
f
Sales
Less: Cost of Sales
Beginning Inventory
Purchases
Shipment to Branch
Shipment from HO
Home Office
525,000.00
200,600.00
612,500.00
(251,000.00)
-
Branch
330,000.00
112,500.00
251,000.00
Total
855,000.00
200,600.00
725,000.00
(251,000.00)
251,000.00
Ending Inventory
Gross Profit
Less: Expenses
Operating Expenses
Depreciation Expense
Net Income
(242,500.00)
205,400.00
(117,500.00)
84,000.00
(360,000.00)
289,400.00
133,000.00
5,900.00
66,500.00
80,000.00
3,250.00
750.00
213,000.00
9,150.00
67,250.00
PROBLEM 4
a Mark-Up on Current Billing
Divide by: Current Shipment (at billed price)
Rate based on sales (GP rate)
10,000.00
40,000.00
0.25
01/01/2017
80,000.00
7,500.00
18,375.00
105,875.00
Inventory of HO
Inventory of Branch - from outsider
Inventory of Branch - from HO
Inventory
b
Beginning Inventory
Purchases
Shipment to Branch
Shipment from HO
Ending Inventory
Cost of Sales
c
Branch
25,875.00
20,000.00
30,000.00
(25,000.00)
50,875.00
Total
105,875.00
230,000.00
(30,000.00)
30,000.00
(80,000.00)
255,875.00
Sales
Less: Cost of Sales
Gross Income
Less: Expenses
True Income of the Branch
78,500.00
50,875.00
27,625.00
12,500.00
15,125.00
To check:
Sales
Less: Cost of Sales
Gross Income
Less: Expenses
Net Income reported by Branch
Add: Realized Mark Up
True Income of the Branch
78,500.00
60,500.00
18,000.00
12,500.00
5,500.00
9,625.00
15,125.00
d
Sales
Less: Cost of Sales
Gross Income
Less: Expenses
Consolidated Net Income
PROBLEM 5
a True Income of the Branch
Less: Net Income reported by Branch
Realized Mark Up
Beginning Inventory from HO (at billed price)
Current Shipment from HO (at billed price)
Ending Inventory from HO (at billed price)
Inventory sold to outsider (at billed price)
Less: Realized Mark Up
Inventory sold to outsider (at cost)
Mark Up
Divide by: Inventory sold to outsider (at cost)
Mark-Up on cost
b
Home Office
80,000.00
210,000.00
(30,000.00)
(55,000.00)
205,000.00
12/31/2017
55,000.00
5,500.00
19,500.00
80,000.00
Ending Inventory from HO (at billed price)
Home Office
300,000.00
205,000.00
95,000.00
60,000.00
35,000.00
Branch
78,500.00
50,875.00
27,625.00
12,500.00
15,125.00
Total
378,500.00
255,875.00
122,625.00
72,500.00
50,125.00
156,000.00
60,000.00
96,000.00
70,000.00
350,000.00
(84,000.00)
336,000.00
96,000.00
240,000.00
96,000.00
240,000.00
0.40
84,000.00
Less: Ending Inventory from HO (at cost)
Allowance for Overvaluation
60,000.00
24,000.00
PROBLEM 6
a
Sales
Divide by:
Cost of Sales
Less: Goods Available for Sale
Ending Inventory of Branch (at billed price)
b
c
d
e
Branch
3,360,000.00
1.40
2,400,000.00
2,700,000.00
300,000.00
Beginning Inventory
Purchases
Shipment from HO (at cost)
Shipment to Branch (at cost)
Goods Available for Sale
Less: Cost of Sales (at cost)
Ending Inventory (at cost)
Home Office
350,000.00
6,250,000.00
(2,000,000.00)
4,600,000.00
4,200,000.00
400,000.00
Branch
Total
160,000.00
510,000.00
6,250,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,160,000.00
6,760,000.00
1,920,000.00
6,120,000.00
240,000.00
640,000.00
Sales
Less: Cost of Sales (at cost)
Gross Profit
Less: Operating Expenses
Consolidated Net Income
Home Office
5,880,000.00
4,200,000.00
1,680,000.00
1,200,000.00
480,000.00
Branch
3,360,000.00
1,920,000.00
1,440,000.00
325,000.00
1,115,000.00
To check:
Sales
Less: Cost of Sales
Gross Income
Less: Expenses
Net Income reported by Branch
Add: Realized Mark Up
True Income of the Branch
Beginning Inventory from HO
Current Shipment from HO
Ending Inventory from HO
Inventory Sold to Outsiders
PROBLEM 7
a
Transfer of cash
Shipment of merchandise
Purchase of merchandise from other supplier
Branch sales
Allocation of advertising expense
Operating expenses of branch paid by HO
Branch remittance
Unadjusted Balance
b
Unadjusted Balance
Shipment of merchandise
Allocation of advertising expense
Branch remittance
Adjusted Balance
c
Sales
Less: Cost of Sales
Beginning Inventory
Purchases
Shipment from HO
Total
9,240,000.00
6,120,000.00
3,120,000.00
1,525,000.00
1,595,000.00
3,360,000.00
2,400,000.00
960,000.00
325,000.00
635,000.00
480,000.00
1,115,000.00
At billed price
200,000.00
2,500,000.00
(300,000.00)
2,400,000.00
At cost
160,000.00
2,000,000.00
(240,000.00)
1,920,000.00
Mark Up
40,000.00
500,000.00
(60,000.00)
480,000.00
Branch Account
15,750.00
125,000.00
3,500.00
61,250.00
205,500.00
HO Account
(15,750.00)
(100,000.00)
(61,250.00)
29,750.00
(147,250.00)
205,500.00
(29,750.00)
175,750.00
(147,250.00)
(25,000.00)
(3,500.00)
(175,750.00)
As reported
245,000.00
True Income
245,000.00
89,250.00
125,000.00
89,250.00
100,000.00
Ending Inventory
Gross Profit
Less: Expenses
Net Income
(58,500.00)
89,250.00
64,750.00
24,500.00
To check:
Sales
Less: Cost of Sales
Gross Income
Less: Expenses
Net Income reported by Branch
Add: Realized Mark Up
True Income of the Branch
d
Beginning Inventory from HO
Current Shipment from HO
Ending Inventory from HO
Inventory Sold to Outsiders
245,000.00
155,750.00
89,250.00
64,750.00
24,500.00
17,500.00
42,000.00
At billed price
125,000.00
(58,500.00)
66,500.00
At cost
100,000.00
(51,000.00)
49,000.00
PROBLEM 8
a Beginning Inventory (at billed price)
Multiply by:
Beginning Inventory (at cost)
b
(51,000.00)
106,750.00
64,750.00
42,000.00
Assuming the sales returns came from shipment from HO:
From
Sales
Less: Sales Returns
Net Sales
Divide by:
Cost of Sales
Mark Up
25,000.00
(7,500.00)
17,500.00
165,000.00
0.80
132,000.00
Outsider
9,000.00
3,750.00
5,250.00
1.20
4,375.00
From HO
160,000.00
160,000.00
1.25
128,000.00
Total
169,000.00
3,750.00
165,250.00
1.25
132,200.00
Beginning Inventory
Shipment from HO
Purchases
Goods Available for Sale
Less: Cost of Sales
Ending Inventory
165,000.00
100,000.00
7,500.00
272,500.00
132,375.00
140,125.00
Inventory from Outsider
Inventory from HO at cost
Inventory destroyed by fire (at cost)
3,125.00
109,600.00
112,725.00
Assuming the sales returns came from outside purchases:
From
Sales
Less: Sales Returns
Net Sales
Divide by:
Cost of Sales
Outsider
9,000.00
9,000.00
1.20
7,500.00
From HO
160,000.00
3,750.00
156,250.00
1.25
125,000.00
Total
169,000.00
3,750.00
165,250.00
1.25
132,200.00
Beginning Inventory
Shipment from HO
Purchases
Goods Available for Sale
Less: Cost of Sales
Ending Inventory
165,000.00
100,000.00
7,500.00
272,500.00
132,500.00
140,000.00
Inventory from Outsider
Inventory from HO at cost
Inventory destroyed by fire (at cost)
112,000.00
112,000.00
PROBLEM 9
a HOME OFFICE BOOKS:
Baguio Branch
Shipment to Branch (Baguio)
Cash
10,650.00
10,000.00
650.00
To record transfer of goods to Baguio.
Shipment to Branch (Baguio)
Laoag Branch
Excess Freight (Expense)
Baguio Branch
Shipment to Branch (Laoag)
10,000.00
10,700.00
150.00
10,850.00
10,000.00
To record reshipment.
BAGUIO BRANCH BOOKS:
Shipment from HO
Freight In
Home Office
10,000.00
650.00
10,650.00
To record goods received from HO.
Home Office
Shipment from HO
Freight In
Cash
10,850.00
10,000.00
650.00
200.00
To record shipment from Baguio to Laoag.
LAOAG BRANCH:
Shipment from HO
Freight In
Home Office
10,000.00
700.00
10,700.00
To record goods received from HO.
b
HOME OFFICE BOOKS:
Baguio Branch
Shipment to Branch (Baguio)
Cash
10,650.00
10,000.00
650.00
To record transfer of goods to Baguio.
Shipment to Branch (Baguio)
Laoag Branch
Baguio Branch
Shipment to Branch (Laoag)
Excess Freight (Gain)
10,000.00
11,000.00
10,850.00
10,000.00
150.00
To record reshipment.
BAGUIO BRANCH BOOKS:
Shipment from HO
Freight In
Home Office
10,000.00
650.00
10,650.00
To record goods received from HO.
Home Office
Shipment from HO
Freight In
Cash
10,850.00
10,000.00
650.00
200.00
To record shipment from Baguio to Laoag.
LAOAG BRANCH:
Shipment from HO
Freight In
Home Office
To record goods received from HO.
10,000.00
500.00
10,500.00