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JAMB Principles of Accounts 2011 Question 36

Question 36

Branch Accounts

The correct entries to record goods transferred to branch from head office is to debit

  1. A.branch stock account and credit goods sent to branch account
  2. B.branch supplies account and credit branch stock account
  3. C.branch stock account and credit purchases account
  4. D.goods sent to branch account and credit branch stock account.
Show the answer and explanation

Answer: A (branch stock account and credit goods sent to branch account)

Explanation

The branch receives stock (debit branch stock) and head office records goods sent out (credit goods sent to branch).