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

Accounts - Principles of Accounts WAEC 2016

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

  • Branch stock adjustment account
  • Goods sent to branch account
  • Branch stock account checkmark
  • Branch profit and loss account

The correct answer is: C

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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