passwella.
Menu

JAMB Principles of Accounts 2011 Question 38

Question 38

Branch Accounts

Goods invoiced to a branch can be sent using

  1. A.cost price, selling price and fixed percentage on selling price
  2. B.cost price, selling price and fixed percentage on cost price
  3. C.cost price and fixed percentage on cost price
  4. D.cost price and fixed percentage on selling price.
Show the answer and explanation

Answer: B (cost price, selling price and fixed percentage on cost price)

Explanation

Goods may be charged to a branch at cost, at selling price or at cost plus a fixed percentage.