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JAMB Principles of Accounts 2014 Question 41

Question 41

Branch Accounts

The profit of a branch is usually credited to the

  1. A.adjustment account.
  2. B.head office sales account.
  3. C.branch office goods account
  4. D.head office current account.
Show the answer and explanation

Answer: D (head office current account.)

Explanation

The branch's profit belongs to head office, so in the branch books it is credited to the head office current account.