The Nadeem Stores Ltd., Multan has a branch at Hyderabad; Goods are invoiced to the branch at a selling price, being cost plus 20%. The branch keeps it's on sale ledger and deposits all cash received daily to the credit of the Head Office Account opened at the MCB, Hyderabad. All expenses are paid by cheques from Multan.

From the following information, prepare Branch Account in the Head Office Books and make the necessary adjustments therein to arrive at the actual branch profit or loss during the year 2007.And also pas journal entries.

Stock on 01-01-07 use 6050 as amount and multiply by 10 (6050) also.

Stock on 31-12-07 use (6050) 1.2times as amount and multiply by 10(6050) also.

Sundry debtors on 01-01-07 16,800

Sundry debtors on 31-12-07 21,600

Goods invoiced from H.0 218,400

Cash sales 215,000

Rent, rates and taxes 9,600

Sundry expenses 1,920

Cash collected from debtors 210,000