Following is the information of the Jammu branch of Best New Delhi for the year ending 31st March, 2025 from the following: (1) Goods are invoiced…

(i) Calculation of profit earned by the branch In the books of Jammu Branch Trading Account and Profit and Loss Account Particulars Amount ₹ Particulars Amount ₹ To Opening stock 2,20,000 By Sales 12,00,000 To Goods received by Head office 11,00,000 By Closing stock (Refer W.N.) 3,60,000 To Expenses 45,000 To Net profit (Bal. fig.) 1,95,000 15,60,000 15,60,000 (ii) Stock reserve in respect of unrealised profit = 3,60,000 x (20/120) = 60,000 Working Note: Particulars ₹ Cost Price 100 Invoice Price 120 Sale Price 150 Calculation of closing stock at invoice price ₹ Opening stock at invoice price 2,20,000 Goods received during the year at invoice price 11,00,000 13,20,000 Less: Cost of goods sold at invoice price (9,60,000) [12,00,000 x (120/150)] Closing stock 3,60,000