The followng information pertains to the head office and the branch of Lekhethu Ltd: Branch inventory on hand (selling price): 1 February 2017 31 January 2018 RS 200 RS OOO Transactions during the year ended 31 January 2018: Inventory sent to branch (selling price). Sales by the branch _ Cash sales _ Credit sales Returns to head office (cost pnce) . Cash received from branch debtors _ Settlement discount granted to branch debtors Inventory stolen at the branch (selling price) Sund e of the branch id head office 156200 71 600 57 600 7 400 11 200 1 ooo 7 soo 18500 Additional information: 2. 3. 4. All inventories are purchased by the head office and supplied to the branch at selling price, which is cost price plus 250K Due to the cument economic downtum, there has been a significant decline in sales at the branch. As a result, the head office has allowed the branch to sell certain products at selling price less 30%. The net proceeds of the products sold at discount amounted to R8 400. This amount is included in the above cash sales figure of R71 600. During the year a burglary took place at the branch and RI 400 in cash (in respect of cash sales) was stolen. No entries regarding the burglary were made in the books. Inventory invoiced to the branch at RS 600 included in the above amount of RI 56 200 pertaining to inventory sent to branch at selling price was In transit at 31 January 2018, and therefore not included in the branch's inventory on hand of RS 000 at 31 January 2018.