2. Bangalore H.O. of a company invoices goods to its Mangalore branch at cost plus \( 20 \% \) the branch also purchases independently from local parties goods for which payments are made by the H.O. All the cash collections of the day is remitted to H.O. through a bank \( \mathrm{a} / \mathrm{c} \) and all expenses of the branch are directly paid by the H.O. From the following show branch \( \mathrm{a} / \mathrm{c} \) in the H.O. Books;
Imprest cash; 1/1/2000 Rs 20,000. 31/12/2000 Rs 18,500 .
Sundry debtors \( 1 / 1 / 2000 \) Rs \( 2,50,000 \).
Stock on 1/1/2000;. Transferred from H.O. at invoice price Rs 2,40,000.
Direct purchases from branch Rs 1,60,000. Total sales Rs 17,50,000. CÃ sh sales Rs 4,50,000. Retum from customers Rs 30,000. Direct purchases Rs 4,50,000. Goods send to branch from H.O. Rs 6,00,000. Transfer from H.O. for petty cash expenses Rs 25,000. Bad debts Rs 10,000. Discount to cu?tomers Rs 20,000. Cash received from customers Rs 12,50,000. Branch expenses Rs 3,00,000. Stock on 31/12/2000; direct purchases by btanch Rs \( 1,20,000 \). Fransferred from H.O. at invoice price Rs 1,80,000. Prepare branch account to ascertain the profit or loss.
(April/May 2006, May June 2010 \& 2013).
