Following is the Trial Balance as on 31 st December, 2026 of the Cambridge Branch of Harry Limited whose Head Office is situated at Pune, India. Dre…

In the books of Head Office Harry Limited Cambridge Branch Trading and Profit & Loss Account for the year ended 31 st December, 2026 Particulars € Particulars € To Opening Stock 36,000 By Sales 2,80,000 To Goods sent from H.O. 2,25,000 By Closing Stock 37,000 To Gross Profit c/d 56,000 3,17,000 3,17,000 To Expenses 12,000 By Gross Profit b/d 56,000 To Depreciation 8,000 To Manager's Commission 3,600 To Net Profit c/d 32,400 56,000 56,000 Converted Trial Balance (into Indian Currency) of Cambridge Branch Particulars Rate per € Dr. (₹ in Lakhs) Cr. (₹ in Lakhs) Furniture 84 67.20 Stock as on 1 st January 2026 91 32.76 Debtors 89 14.24 Cash at Bank 89 2.67 Head Office A/c Actual 61.00 Creditors 89 10.68 Sales 86 240.80 Expenses 86 10.32 Goods from Head Office Actual 180.00 Exchange Difference in rate 5.29 Total 312.48 312.48 Closing Stock € 37,000 @ 89 32.93 Working Notes: 1. Calculation of Closing Stock and COGS Particulars € Opening Stock 36,000 Add: Goods from Head Office 2,25,000 2,61,000 Less: Cost of Goods sold (at invoice price) €2,80,000 x 100/125 = € 2,24,000 2,24,000 Closing Stock 37,000 2. Calculation of Manager's Commission @ 10% of Profit 10% of (Euro 56,000 - Euro 12,000- Euro 8,000) = 10% of Euro 36,000= Euro 3,600