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JAMB Principles of Accounts 2003 Question 46

Question 46

Branch Accounts

The amount of each invoiced goods sent to the branch is debited to

  1. A.branch expense account and credited to branch debtors' account
  2. B.branch stock account and credited to the goods sent to branch account
  3. C.branch debtors' account and credited to branch expense account
  4. D.goods sent to branch account and credited to branch expense account
Show the answer and explanation

Answer: B (branch stock account and credited to the goods sent to branch account)

Explanation

Goods sent to a branch: debit branch stock account, credit goods sent to branch account.