A Head Office in Calcutta has a branch at Haldia. All purchases are made by Head Office and goods sent to the branch are invoiced at cost plus 25%. All cash received by branch is deposited to the Head Office Account in the branch of the Head Office’s bank.

The branch maintains a Sales Ledger and other necessary subsidiary books; but all other branch transactions are recorded in the Head Office books.
The following information pertaining to the branch has been collected for the year ended December 31, 2017:In the Head Office books, prepare the Branch Stock Account, Branch Debtors Account and Branch Profit and Loss Account.

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Particulars Stock at branch (1.1.2017 - cost price) Goods received from Head Office (invoice price) Credit sales Bad debts written-off Cash received from customers Particulars Stock at Branch (31.12.2017 - cost price) Cash sales ₹ 96,000 3,80,000 1,72,000 Discount allowed to customers 2,000 Branch expenses paid 1,64,000 ₹ 80,000 2,16,000 4,000 22,800