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JAMB Accounting 2010 Objective — Question 36

Question 36 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.

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36. If goods were returned to branch by the Customers, the correct posting for this transaction is to debit A. branch debtor's account and credit head office account B. head office account and credit branch stock account C. branch stock account and credit branch debtors account D. branch cash account and credit branch stock account

  • A. branch debtor's account and credit head office account
  • B. head office account and credit branch stock account
  • C. branch stock account and credit branch debtors accountCorrect
  • D. branch cash account and credit branch stock account

Explanation

When goods are returned to branch, the entry is: Dr Stock A/c; Cr Debtors A/c.

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