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WAEC Financial Accounting 2018 Question 46

Question 46

Branch Accounts

Under the cost method in Branch Accounts, branch gross profit is disclosed in the

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

Answer: C (Branch Stock Account.)

Explanation

With goods sent at cost, the branch stock account works as a trading account showing gross profit.