Bit Ltd is a computer supplies retailer with a branch St James. Goods are invoiced to the branch at cost plus 25%. The branch remits all cash received to head office and all expenses are paid by the head office. The following information relating to the branch, is available: $

Branch Debtors on 2018 January 01 90 000 Branch Stock on 2018 January 01 36 000 Sales: cash 40 000 Sales: credit 920 000 Goods from Head Office (invoice price) 840 000 Cash received from debtors 576 000 Discount Allowed to debtors 14 000 Bad debts 3 000 Branch expenses paid by Head Office 50 000 Branch Stock on 2018 December 31 160 000

Required:

A. Prepare the following accounts:

i. Branch Stock

ii. Goods Sent to Branch

iii. Branch Adjustment

iv. Branch Debtors

B. Branch Profit and Loss Account in the books of the Head Office.