ILLUSTRATION 9 An Indian company Moon Star Limited has a branch of Verginia (USA). The Branch is a non-integral foreign operation of the Indian company. The Trial Balance of the Branch as at 31st March, 2015 is as follows: US $ Particulars Dr. Cr. Office Equipments 48,000 Furniture and Fixtures 3,200 Stock (April 1, 2014) 22,400 Purchases 96,000 Sales 1,66,400 Goods Sent from HO 32,000 Salaries 3,200 Carriage Inward 400 Rent, Rates & Taxes 800 Insurance 400 Trade Expenses 400 Head Office Account 45,600 Sundry Debtors 9,600 Sundry Creditors 6,800 Cash at Bank 2,000 Cash in Hand 400 2,18,800 2,18,800 The following further informations are given : (1) Salaries Outstanding $400. (2) Depreciate Office Equipment and Furniture & Fixtures @ 10% p.a. at written down value. (3) The Head Office sent goods to Branch for 15,80,000. (4) The Head Office shown an amount of 20,50,000 due from Branch. (5) Stock on 31st March, 2015-$21,500. (6) There were no transit items either at the start or at the end of the year. (7) On April 1, 2013 when the fixed assets were purchased the rate of exchange was 43 to one $. On Aril 1, 2014, the rate was 547 per $. On March 31, 2015 the rate was