Question on: JAMB Accounting - 2022

Gross profit in the branch adjustment account is transferred to the branch?

A
trading account
B
receipts and payments account
C
profit and loss account
D
income and expenditure account
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Correct Option: C

Gross profit is a measure of profitability derived from a company's trading activities. It represents the difference between revenue and the cost of goods sold. The branch adjustment account's gross profit needs to be transferred to an account that shows the final profit or loss for the branch. The profit and loss account is where revenues, cost of goods sold, and other expenses are summarized to determine the net profit or loss.

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