Advanced financial accounting

 Adama Garment Company operates a branch in Asella town. At the end of 200A the branch account in the books of the home office in Adama shows a balance of $ 15,000. The following information is ascertained.

A. The Home office has billed the Branch the amount of $17,500 for merchandise, which Was in-transit on Dec.31.

B. A home office account receivable for $10,500 was collected by the Branch. Sold Collection was not reported to the home office by the branch.

C. Cash of $4,500 were returned by the branch to the Home office but the home office was not reflected in its records the receipt of the supplies.

D. Trade account receivables of a branch were collected by Home office $ 2000 Instruction Prepare the worksheet for the reconciliation of the reciprocal accounts and make the entries to adjust the books of the home office and that of the branch.

Determine the balance of the inter office account in the books of the branch as of Dec.31, before adjustment. II. Write the necessary answer for the following questions. State the characteristics of agency, branch and home office. Compare and contrast Joint venture and Partnership forms of business. Briefly discuss the nature of public enterprise. Explain what privatization is and reasons for privatization briefly.