Squid Ltd, whose head office is in Aberdeen, operates a branch in Dundee. 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 Dundee, all transactions are recorded in the books in Aberdeen.

The following particulars are given of the transactions at the branch during the year ended 30 June 2006.

You are required to write up the branch inventory account and branch total accounts receivable account for the year ended 30 June 2006, as they would appear in the head office books, showing clearly any abnormal wastage.

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Inventory on hand, 1 July 2005, at invoice price 26,400 Accounts receivable on 1 July 2005 23,676 Inventory on hand, 30 June 2006, at invoice price 23,688 Goods sent from Aberdeen during the year at invoice price 148,800 Credit sales 126,000 Cash sales 14,400 Returns to head office at invoice price 6,000 Invoice value of goods stolen 3,600 888 Bad debts written off Cash from debtors Normal loss at invoice price due to wastage Cash discount allowed to debtors 134,400 600 2,568