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WAEC Financial Accounting 1997 Question 46

Question 46

Branch Accounts

Which of the following serves the same purpose as a Trading Account?

  1. A.Branch Adjustment Account
  2. B.Goods sent to Branch Account
  3. C.Branch Stock Account
  4. D.Branch Debtors Account
  5. E.Branch Returns Account.
Show the answer and explanation

Answer: C (Branch Stock Account)

Explanation

The branch stock account (kept at cost, or with the adjustment account) brings out the branch's gross profit, like a trading account.