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JAMB Principles of Accounts 2011 Question 37

Question 37

Branch Accounts

The two accounts that are normally opened in the head office when goods are transferred to a branch are

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

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

Explanation

Head office keeps a branch stock account and a goods sent to branch account.