Goods stolen at the branch is debited to?

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.