passwella.
Menu

JAMB Principles of Accounts 2007 Question 6

Question 6

Branch Accounts

Stock (1/1/02) at selling price ₦2 000
Goods sent to branch (selling price) ₦?
Sales by branch (selling price) ₦4 500
Stock (31/12/02) ₦?
Opening stock is ¼ of goods sent to branch.
The value of goods sent to branch is

  1. A.₦4 000
  2. B.₦6 000
  3. C.₦8 000
  4. D.₦2 000.
Show the answer and explanation

Answer: C (₦8 000)

Explanation

Opening stock = ¼ of goods sent, so goods sent = 4 × 2 000 = ₦8 000.