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JAMB Principles of Accounts 2009 Question 37

Question 37

Branch Accounts

Which of the following is a common cause of a discrepancy between head office and branch trial balance?

  1. A.Debtors and cash in transit
  2. B.Creditors and cash in transit
  3. C.Stock and cash in transit
  4. D.Stock and prepayments
Show the answer and explanation

Answer: C (Stock and cash in transit)

Explanation

Goods and cash sent but not yet received at the end of the year appear in one set of books but not the other.