Banana enterprises:

The following information relates to the branch and head office of Banana enterprises:

Balances at 1 January 2022: R

Inventory (at selling price) 19 500

Transactions of the branch during the year ended 31 December 2022:

Inventory sent to branch at selling price 114 000

Credit sales 54 800

Cash sales banked 30 000

Inventory returned to head office at cost 8 500

Damaged inventory written off at cost 12 000

Additional information:

1. Inventory supplied to the branch is invoiced at selling price, which is cost plus 20%

2. The profit mark-up on inventory purchased by the branch is 15% on cost.

3. Cash amounting to R11 000 received from cash sales was stolen during a robbery. This

transaction is still to be recorded in the books.

4. In order to boost December sales, a special sales promotion was held at the branch where

inventory was sold at selling price less 20%. Proceeds from the special promotion amounted to

R20 160. The amount is included in the cash sales figure.

5. An amount of R15 000, included in cash sales banked, was in respect of sales of inventory

purchased by the branch and paid for using cash collected from sales.

6. When a physical inventory count was undertaken at the branch, it was discovered that inventory

with a selling price of R1 200 was missing. The matter was investigated, and it was established

that the inventory was stolen.

7. The branch donated inventory with a selling price of R3 360 to a local not for profit company.

8. According to the physical inventory count, Inventory on hand at 31 December 2022 amounted to

R5 000 (at cost price).

You are required to:

Prepare the Branch inventory account in the general ledger of Banana enterprises for the year

ended 31 December 202