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WAEC Financial Accounting 2024 Question 48

Question 48

Branch Accounts

Where the head office maintains all books of account, the cost of goods returned is credited to

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

Answer: B (Branch Stock Account.)

Explanation

Goods returned by the branch leave branch stock: debit goods sent to branch, credit branch stock.