passwella.
Menu

JAMB Principles of Accounts 2005 Question 38

Question 38

Branch Accounts

The movement of goods from head office to a branch is treated in the head office accounts as

  1. A.sales
  2. B.issue
  3. C.purchase
  4. D.requisition
Show the answer and explanation

Answer: C (purchase)

Explanation

Goods sent to a branch are not sales; in the head office trading account they are deducted from purchases, so they are treated through the purchases account.