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JAMB Accounting 2010 Objective — Question 38

Question 38 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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38. Goods returned to branch by branch customers is recorded in the head office books by debiting A. bank account and crediting branch stock account B. goods sent to branch account and crediting branch debtors' account C. branch stock account and crediting branch debtors' account D. branch debtors' account and crediting cash account

  • A. bank account and crediting branch stock account
  • B. goods sent to branch account and crediting branch debtors' accountCorrect
  • C. branch stock account and crediting branch debtors' account
  • D. branch debtors' account and crediting cash account

Explanation

When branch customers return goods to head office, the recording is: Dr Goods sent to branch A/c; Cr Branch debtors A/c.

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