Linken Ltd. with a Head Office in Calcutta opened a branch on January 1, 2017, at Kanpur where all sales were to be made on credit basis.

All goods required by the branch were supplied by the company from Calcutta and invoiced to the branch at 20 per cent above cost. During the year ended 31st December, 2017 the following transactions took place:

Loss of goods at branch through pilferage is estimated at 1 percent of goods received. The stock of goods held by the branch on 31st December, 2017 amounted to ₹5,820 at invoiced price. You are required to record the entries in the appropriate accounts in the Head Office Ledger showing the balances as on 31st December, 2017 and the branch gross and net profits, for the year ended on that date. Assume that there are no other charges.

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Particulars Goods sent to Kanpur branch (at cost to H.O.) Sales as shown by Kanpur branch report Debtors balance at branch written-off as bad ₹ Particulars 22,000 Returns to Calcutta office (at cost to H.O.) 19,670 Cash received from debtors and remitted to Calcutta 640 ₹ 840 15,190