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WAEC Financial Accounting 2025 Question 41

Question 41

Branch Accounts

The accounting entries in the books of the head office for goods returned by a customer to a branch are: debit

  1. A.Branch Debtors Account: credit Branch Stock Account.
  2. B.Branch Stock Account: credit Returns Inwards Account.
  3. C.Branch Stock Account: credit Branch Debtors Account.
  4. D.Returns Inwards Account: credit Branch Debtors Account.
Show the answer and explanation

Answer: C (Branch Stock Account: credit Branch Debtors Account.)

Explanation

The goods come back into the branch's stock and the customer owes less: debit Branch Stock, credit Branch Debtors.