Question on: JAMB Accounting - 2023
When goods are received from head office, head office will be credited while
A
sales will be debited
B
requisition will be debited
C
issue will be debited
D
purchases will be debited
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Correct Option: D
When goods are received from the head office, it represents an increase in the inventory or stock of the branch. The accounting entry reflects the increase in the branch's assets (inventory/purchases). Therefore, the purchases account is debited to record this increase. The head office account is credited to show that the branch owes the head office for the goods received.
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