A. Defalcations account
B. Branch stock account
C. Branch adjustment account
D. Branch debtors account
Correct Answer: Option A
A. Defalcations account
Explanation
Defalcation predominantly refers to the theft, misuse or misappropriation of money or funds held by an official trustee, or other senior-level fiduciary. In this regard, a defalcation account will be opened to record the stolen goods.
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