If goods were returned to branch by the customers, the correct posting for this transaction is to debit?
- branch debtor's account and credit head office account
- head office account and credit branch stock account
-
branch stock account and credit branch debtors' account
- branch cash account and credit branch stock account
The correct answer is: C
Explanation
Debit branch stock account (stock have increased by what was returned) and credit branch debtors' account