2.

 F Banaghan Ltd, whose head office is in Bristol, operates a branch in Exeter. All goods are purchased by head office and invoiced to and sold by the branch at cost plus 50%.
Other than a sales ledger kept in Exeter, all transactions are recorded in the books in Bristol.
The following particulars are given of the transactions at the branch during the year ended 30 June 2012.
£
Inventory on hand, 1 July 2011, at invoice price 52,800 Accounts receivable on 1 July 2011 23,676 Inventory on hand, 30 June 2012, at invoice price 47,370 Goods sent from Bristol during the year at invoice price 297,600 Credit sales 258,000 Cash sales , 14,400 Returns to head office at invoice price 12,000 Invoice value of goods stolen 7,200 Bad debts written off 888 Cash from debtors 268,800 Normal loss at invoice price due to wastage 1,200 Cash discount allowed to debtors 2,568 You are required to write up the branch inventory account and branch total accounts receivable account for the year ended 30 June 2012, as they would appear in the head office books, showing clearly any abnormal wastage.