Accounting WAEC

The cost of goods returned by branch to head office is debited?

A. Branch stock adjustment account
B. Goods sent to branch account
C. Branch stock account
D. Branch profit and loss account

Correct Answer: Option C

C. Branch stock account

Explanation

The head office will debit the particular branch asset (Branch Machinery, Branch Furniture, or Branch Building, branch stock account etc.) and credit Cash.

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