JAMB Principles of Accounts 1999 Question 47

Use the information below to answer questions 46 and 47.
Amoga Limited invoiced goods at a cost of ₦10,000 to its Ikeja branch at a margin of 20%. The branch later returned goods worth ₦1,200 at invoice price to the head office.
What is the correct entry in the head office books at the point of initial transfer of the goods?

1. A.Branch stock account would be credited with ₦10,000.
2. B.Branch stock account would be debited with ₦12,000
3. C.Goods sent to branch account would be debited with ₦10,800
4. D.Goods sent to branch account would be credited with ₦12,000.