Prepare the Branch Inventory Account and Branch Adjustment Account for the year ended 31 December 2021.

Here are the complete entries for the required accounts:

The loading on goods is 40% on cost. This means Selling Price = Cost Price + 40% of Cost Price = 1.4 $\times$ Cost Price.
The loading percentage on selling price is $\frac{40}{140} = \frac{2}{7}$.

4.1 Branch Inventory Account
This account records the movement of inventory at selling price.

\begin{array}{|l|r|l|r|} \hline Debit & R & Credit & R \\ \hline Balance b/d (Opening Inventory) & 115\,92