All purchases are made by the Head Office, all goods sold by the branches are received from the Head Office and the branches sell, maintain accounts of the debtors, collect from them and send daily collections to the Head Office. Branch expenses are met from remittances specially sent from Head Office which keeps no stock.The expenses at the Head Office which is in Bombay amounted to ₹8,000 and general charges to ₹1,000. Prepare the Branch Accounts as they should appear in the Head Office books and Profit and Loss Accounts showing the net results of each branch as also of the Head Office in Bombay.

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Bad debts. Debtors at commencement Debtors at end Sales (credit) Return inwards Allowances to Debtors Sales (cash) Goods bought and sent General charges Salaries Opening stock Closing stock Particulars Madras (₹) 1,200 23,100 29,460 61,210 600 1,100 11,000 40,000 500 1,600 19,000 5,000 Delhi (₹) 1,000 19,460 18,900 31,000 900 19,000 30,000 300 2,000 18,000 4,800 Calcutta (3) 500 21,020 22,000 49,109 300 1,300 18,000 29,000 200 1,000 21,000 3,600