Question on: JAMB Accounting - 2022
The amount of each invoiced goods sent to the branch is debited to?
A
branch expense account and credited to branch debtors' accoount
B
branch stock account account and credited to the goods sent to branch account
C
branch debtors' account and credited to branch expense account
D
goods sent to branch expense account
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Correct Option: B
The correct answer is:
- B. branch stock account account and credited to the goods sent to branch account
Here's the explanation:
When goods are sent from the head office to a branch, the branch stock account is debited to increase the value of stock at the branch. The goods sent to the branch account is credited to reflect the decrease in stock at the head office. This is because the head office is essentially "selling" goods to the branch.
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