svn multi-folder merge conflict

HI ,

I'm new to SVN branching and merging. I have created SVN folder structure as (ref image).

[cid:emb889bd8f-e116-4234-89d5-ce0b70b278b6_at_jebamani]

 1. T1 and T2 develop code and commit to their respective folder
 2. From each team folder, code has to be merge to common folder Development > trunk
 3. T1 merged to Development > trunk.
 4. T2 updates their folder by merging from Development> trunk.
 5. On merging, T2 facing files conflict.

on trying to resolve/edit conflict, diff is not showing the Development conflict code in left panel and right panel has T2 conflict code.

Is the folder structure, right? I am missing any merge setting between folders???

After changing merge setting I am able to see the expected files in the diff panel, but the diff includes the lines that have been deleted long back. (ref img)

[cid:em7f24cd28-f336-447a-8aa5-43d463eaf26e_at_jebamani]

Thank you,
Bhaskar Jebamani

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