ILLUSTRATION 7. M/s Arthur & Co. commenced business on 1-4-2014 with Head Office at Ohio and a Branch at Washington DC. Purchases were made exclusively by the Head Office, where the goods were processed before sale. There was no loss or wastage in processing. Only the processed goods received from Head Office were handled by the Branch. The goods were sent to branch at processed cost plus 10%. All sales, whether by head office or by the Branch, were at uniform gross profit of 25% on their respective cost. Following is the Trial Balance as on 31-3-2015. Head Office Branch Dr. Dr. $ Cr. $ 3,10,000 Cr. $ $ Capital 55,000 19,69,500 50,500 Drawings Purchases Cost of processing Sales Goods sent to Branch Administrative Expenses Selling Expenses Debtors Branch Current A/c Creditors Bank Balance Head Office Current Account Goods received from H.O. 12,80,000 8,20,000 9,24,000 1,39,000 15,000 50,000 6,200 3,09,600 1,13,600 3,89,800 6,01,400 10,800 1,52,000 77,500 2,61,500 8,80,000 31,15,400 31,15,400 10,92,300 10,92,300 Following further information is provided : (i) Goods sent by Head Office to the Branch in March, 2015 of $44,000 were not received by the Branch till 2-4-2015. (ii) A remittance of $84,300 sent by the Branch to Head Office was also similarly not received upto 31-3-2015. (iii) Stock taking at the Branch disclosed a shortage of $20,000 (at selling price to the branch). (iv) Cost of unprocessed goods at head Office on 31-3-2015 was $1,00,000. Prepare Trading and Profit and Loss Account in columnar form and Balance Sheet of the business as a whole as at 31-3-2015