Cocoa Traders trades in hardware. The companys merchandise are sold at the head office in Midrand and at the branch in Giyani. All the merchandise are purchased by the head office and dispatched to the branch at a mark-up of 33 1/3% on cost. A bank account for the branch is opened at a bank at Giyani. The branch must deposit all cash receipts in the bank and payments at the branch are made by cheque. The branch only keeps record of cash transactions and all other accounts are kept at head office. The head office is registered for VAT (use a VAT rate of 15%). The following balances appeared in the records of head office on 1 November 20.19: Branch inventories at selling price (excluding VAT) R96 000 Branch receivables R15 000 Transactions during November 20.19: 1. Head office dispatched goods at selling price R842 000, excluding VAT, to the branch. 2. The branch sells merchandise for cash and receive R503 700. 3. The branch sells merchandise to the amount of R368 000 (total of invoices) on credit to receivables. 4. Some of the merchandise which is not in demand in Giyani is returned at selling price of R9 000 (excluding VAT) to head office. 5. Receivables of the branch pay the accounts to: The branch R120 000 The head office R80 000 The branch allows R11 730 discount to receivables (not accounted for with sales). 6. The branch receives notice that a receivable who owes R2 640 is insolvent and receives R1 716 as a first and final dividend. 7. The head office pays the monthly rent of the building to the amount of R17 020 on behalf of the branch. 8. The branch pays salaries and wages of R12 400. Additional information 1. Inventories were sold at a discount of 10% at a sale during the month. The proceeds with the sale of these items amounted to R20 909 (including VAT) and are included in the amount in point 2. 2. The value of inventories at the branch at marked price on 30 November 20.19 amounts to R162 780 (excluding VAT) 3. Inventory losses of more than R500 are material. REQUIRED: Prepare the following accounts in the records of head office: 3.1 Branch inventories 3.2 Branch gross profit 3.3 Branch profit or loss 3.4 Branch receivables Calculate towards the nearest rand.