JAMB Accounting 2019 Objective — Question 5

Use the information below to answer these questions: Dauda Nig Ltd invoiced goods at a cost of ₦10,000 to its Apapa branch at a margin of 20%. The branch later returned goods worth ₦1,200 (at invoice price) to the head office. The profit margin should be

• A. debited to goods sent to branch account
• B. debited to branch stock adjustment account
• C. credited to branch adjustment accountCorrect
• D. credited to branch stock account