Jaico Ltd. invoices goods to its Kanpur branch at cost plus 25% thereon, both cash and credit sales are effected by the branch. The branch expenses are paid direct from the Head Office. The details of transactions available for the  year ended 31.3.2017 are:

Record the above transactions in the Head Office ledger and close the accounts as on 31.3.2017 and show how the relevant items will appear in the Head Office’s Balance Sheet on that date.

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Particulars Goods received from Head Office at invoice price Returns to Head Office at invoice price Stock at Kanpur on 1.4.2016 at invoice price Credit sales for the year Cash sales for the year Debtors as on 1.4.2016 Debtors as on 31.3.2017 Particulars Discounts allowed to customers Bad debts ₹ 40,000 800 8,000 Returns from customers 30.000 Rent and rates 18,700 Wages and salaries 5,200 Sundry expenses 4,200 Stock on 31.3.2017 at invoice price ₹ 300 500 700 60 1,200 300 6,000