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WAEC Financial Accounting 2017 Question 45

Question 45

Branch Accounts

The accounting entries when goods are sold on credit at the branch are debit;

  1. A.Branch Debtors Account; credit Sales Accounts.
  2. B.Branch Current Account; credit Sales Accounts.
  3. C.Branch Debtors Account; credit Head Office Current Account.
  4. D.Head Office Current Account; credit Sales Accounts.
Show the answer and explanation

Answer: A (Branch Debtors Account; credit Sales Accounts.)

Explanation

The branch debits its debtors and credits its sales account.