Bank Account at Nagpur.

From the following details, relating to the year $2021-2022,$ prepare the accounts in Head Office Ledger and ascertain Branch Profit as per stock and debtors method. Branch does not maintain any books of accounts, but sends weekly returns to head office:

particulars

Goods received from head office at invoice price

$1,20,000$

Returns to head office at invoice price

$2,400$

Opening Stock at Nagpur branch at invoice price

$12,000$

Sales during the year $-$ Cash

$40,000$

Credit

$72\mathrm{.}000$

Opening Debtors at Nagpur branch

$14,400$

Cash received from debtors

$64,000$

Discounts allowed to debtors

$1,200$

Bad debts during the year.

$800$

Sales returns at Nagpur branch

Salaries and wages at branch

$1,600$

Rent, Rates and Taxes at branch Office expenses at Nagpur branch

$12,000$

$3,600$

Closing Stock at branch at cost

$1,200$

$19,200$

$($ill$)$ Nagpur Branch Adjustment Account.

$12.$ Ram Limited of Chennai has a branch at Nagpur to which office, goods are invoiced at cost plus $25\%.$ The branch makes sales both for cash and on credit. Branch expenses are paid direct from Head Office and the branch has to remit all cash received into the Head Office