=+2. S. Eller carries on a retail business in Birmingham. On 1st March, 1962, he opened a branch shop in Coventry from which all sales were made on credit terms. All goods for the branch were supplied from Birmingham and were charged out at cost plus 25 per cent. The following were the transactions during the first three months:

Goods sent to branch (at cost of purchase)
Returns by branch (at price charged to branch)
Sales as per monthly return from branch Cash received and remitted to Birmingham The value of the stock at the branch on 31st May, 1962, at the price it was invoiced to the branch, was £6,300.