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WAEC Financial Accounting 2017 Question 43

Question 43

Departmental Accounts

In departmental accounting, when goods are sent from one department to another for sale, the transaction is treated as

  1. A.inter departmental transfer.
  2. B.inter departmental sales.
  3. C.intra departmental purchases.
  4. D.intra department sales.
Show the answer and explanation

Answer: A (inter departmental transfer.)

Explanation

Goods moved between departments are recorded as inter-departmental transfers.