JAMB Accounting 2019 Objective — Question 6

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. What is the correct entry in the head office books at the point of initial transfer of the goods?

• A. Branch stock account would be credited with ₦10,000
• B. Branch stock account would be debited with ₦12,000
• C. Goods sent to branch account would be debited with ₦10,800
• D. Goods sent to branch account would be credited with ₦12,000Correct