JAMB Accounting 2007 Objective — Question 11

Goods worth #50,000 were sent at different times from head office to the branch during the year. By the end of the period, only #40,000 worth of goods had arrived at the branch. Which of the following is correct about the treatment of this transaction?

• A. Branch should debit goods received from head office with #50,000
• B. Head office should debit goods sent to branch account with #10,000
• C. Head office should debit goods sent to branch account with #50,000Correct
• D. Branch should debit goods received from head office with #10,000