Question: S. Eller carries on a retail business in Birmingham. On 1st March, 1962, he opened a branch shop in Coventry from which all sales were made on credit terms. All goods for the branch were supplied from Birmingham and were charged out at cost plus 25 per cent. The following were the transactions during the first three months:
The value of the stock at the branch on 31st May, 1962, at the price it was invoiced to the branch, was £6,300. Record these transactions as they should appear in the books at Birmingham bringing down balances as on 31st May, 1962, and show the gross profit of the branch for the period ended on that date.