Let’s Analyze

1.
Adjusted Investment in Branch account ₱131,690
Error from acquisition of furniture and fixtures 90
Error from Merchandise allowances 50
Error from interest charges (325)
Error from labor charge 433
Error from charging for freight on merchandise (706.50)
Error on charging for truck repairs (293)
Error from proceeds received by Home Office 475
Error from accidentally receiving a post-dated copy of 475
Home Office entry
Unadjusted Home office Account ₱131,888.50

2. Given in the problem that the adjusted or the correct investment in Branch account is P131,690 and
the same with the Home Office account from the books of Branch.

3.
INVESTMENT HOME OFFICE
IN BRANCH
UNADJUSTED BALANCES P131 690 P131,888.50
a. Error made by the branch in recording the - (90)
purchase of F and F
b. Error made in recording the merchandise - (50)
received from HO
c. Incorrect entry is recorded in charging the - 325
interests
d. The labor charge is recorded twice by the - (433)
branch
e. Error made by the branch in recording the - 706.50
freight charges on merchandise
f. Error made by the branch regarding to the - 293
incorrect debit note sends to HO representing
of its own expense (truck repairs)
g. Error made by the home office receiving - (475)
proceeds from the sale of a truck and
erroneous by crediting to the branch account
h. The branch accidentally receives a copy of the - (475)
HO entry (correcting and records a credit in
favor of the HO Account)
ADJUSTED BALANCES P131,690 P131,690
4.
Adjusting Entries
a. Home Office 90
Cash 90
b. Home Office 50
Shipments from HO 50
c. Interest Expense 75
Interest Payable 250
Home Office 325
d. Home Office 433
Salaries Expense 433
e. Freight In 706.50
Home Office 706.50
f. Repairs and Maintenance 293
Home Office 293
g. Home Office 475
Truck 475
h. Home Office 475
Truck 475