Illustration of double entry
The balances on the current accounts of a head office and branch were Ksh 698,000, before the transactions listed below:
|
|
Kshs
|
|
Goods sent to branch by head office
|
1,727,000
|
|
Remittances received by head office from branch
|
892,000
|
|
Goods received by branch from head office
|
1,620,000
|
|
Remittances sent to head office by branch
|
944,000
|
|
Branch profit for the period
|
594,000
|
|
Goods in transit from head office to branch
|
107,000
|
|
Cash in transit from branch to head office
|
52,000
|
Books of head office:
Branch Current A/C
|
|
Sh
|
|
Sh
|
|
Bal b/d
|
698,000
|
Cash book
|
892,000
|
|
GSTB
|
1,727,000
|
Bal c/d
|
*1,533,000
|
|
|
2,425,000
|
|
2,425,000
|
|
Bal b/d
|
1,533,000
|
Goods in transit
|
107,000
|
|
Branch profit
|
594,000
|
Cash in transit
|
52,000
|
|
|
________
|
Bal c/d
|
1,968,000
|
|
|
2,127,000
|
|
2,127,000
|
* Entry that is usually found in the trial balance of the Head Office.
Goods sent to branch
|
|
Sh
|
|
Sh
|
|
|
|
Branch current a/c
|
1,727,000
|
Goods in transit
|
|
Sh
|
|
Sh
|
|
Branch current a/c
|
107,000
|
|
|
Cash in transit
|
|
Sh
|
|
Sh
|
|
Branch current a/c
|
52,000
|
|
|
Books of the branch:
Head office current account
|
|
Sh
|
|
Sh
|
|
Cash book
|
944,000
|
Bal b/d
|
698,000
|
|
Bal c/d*
|
1,374,000
|
|
1,620,000
|
|
|
2,318,000
|
|
2,318,000
|
|
|
|
Bal b/d
|
1,374,000
|
|
Bal c/d
|
1,968,000
|
Branch profit
|
594,000
|
|
|
1,968,000
|
|
1,968,000
|
* Entry that is usually found in the trial balance of the branch.
Goods from head office
|
|
Sh
|
|
Sh
|
|
H.O current a/c
|
1,620,000
|
|
|