Following is the information of the Texas branch of Best Ltd., New York for the year ending 31st March, 2015 from the following: (1) Goods are invoiced to the branch at cost plus 20%. (2) The sale...

Extracted text: Following is the information of the Texas branch of Best Ltd., New York for the year ending 31st March, 2015 from the following: (1) Goods are invoiced to the branch at cost plus 20%. (2) The sale price is cost plus 50%. (3) Other information: Stock as on 1-4-2014 at l.P. $ 2,20,000 Sales during the year $ 12,00,000 Goods sent during the year at I.P. $ 11,00,000 Expenses incurred at the branch, 45,000 Ascertain : (1) the profit earned by the branch during the year. (II) branch stock reserve in respect of unrealized profit.