The head office of a company invoices goods to its Coimbatore Branch at cost plus 20%. The Coimbatore Branch also purchases independently from local parties goods for which payments are made by the head office. All the cash collected by the Branch is banked on the same day to the credit of the head office and all expenses are directly paid by the head office except for a petty cash account maintained by the Branch for which periodical transfers are made by the head office. From the following particulars show the Branch Account as maintained by the head office reflecting the Branch profit for the year ending December 31, 1998. Imp rest Cash 1.7.1998 31.12.1998 David Debtors on 1.7.1998 stock on 1.7.1998: Transferred from H.O. at invoice price Directly purchased by branch 24,000 $. 2,000 1,850 25,000 16,000 40,000 Cash Sales Credit Sales Direct Purchases Returns from customers 45,000 1,30,000 45,000 3,000 Goods sent to Branch from H.O. at invoice price 60,000 Transfers from H.O. for petty casi expenses Bad debts Discount to customers Cash received from customers 2,500 1,000 2,000 1,25 000 3,000 Branch expenses Stock as on 31.12.1998 18,000 Transfer from H.O. at invoice price Directly purchased by branch 12,000 30,000