X Ltd. operates a retail branch at Bombay. All purchases are made by the Head Office in Calcutta, goods being charged out to the branch at selling price which is cost plus 25%. All the expenses of branch are paid through Head Office cheques. Cash collected from customers as also the ready money sales are daily banked to the credit of the Head Office. From the following particulars of the branch write-up necessary accounts to arrive at the branch profit or loss in the Head Office books by using stock and debtors system.

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Debtors at start Debtors at end Particulars Ready money sales during the year Cash received on ledger account Returns to H.O. at invoice price Invoiced inventory at the beginning Particulars ₹ 10,000 Invoiced inventory at the end 12,000 Salaries 70,000 Rent 65,000 Bad debts 5,000 Discount and allowance 16,000 Normal leakage and spoilage ₹ 15,000 6,000 5,000 2,000 3,000 4,000