0 anch SE i's Q.7 31, 1999 and also 19,850; Closing assets of branch a/c 23,650.] Vimal Cloth Emporium has a head office in Mumbai and many retail branches which are supplied goods from head office at 25% profit on cost price. Accounts are kept at head office from where all expenses (except petty expenses) are paid. Such petty expenses are paid by the branches which are allowed to maintain petty cash balance of 1,500 on imprest system. From the following balances, as shown by the books, prepare branch account at cost price. Balances as on 1 January 1999: Petty Cash at Branch Stock in hand at Branch at sale price Sundry Debtors at Branch Sundry Creditors at Branch Furniture and Fixtures at Branch Prepaid Rent 1,500 32,000 8,700 2,500 7,500 600 Transactions for the year ended 31st December 1999 were as follows: Goods sent to branch (less returns) Cash Sales at Branch Credit Sales at Branch Allowances to Debtors Cash Received from Customers Bad Debts to be written off Cash Purchases by the Branch (on Permission from head office) Cash paid to Creditors Creditors at the end Payments made by Head Office: Rent for one year (paid on July 1, 1999) Salaries (paid in advance '500) Insurance paid for the year ending 31 March 2000 Payments made by the Branch: Petty Expenses Balances on December 31,1999: Stock at cost Provide Depreciation on Furniture at 20% p.a. 1,15,000 95,000 65,000 1,200 55,000 350 15,000 10,000 3,500 2,400 2,500 1,800 1,200 40,000 1223