JAMB Accounting 2020 Objective — Question 6

Question 6 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

6. In a situation where goods are sent to the branch at selling price, one of the following accounts is not necessary

A. A. Branch stock account
B. B. Branch profit and loss adjustment account
C. C. Branch debtors account
D. D. Branch trading accountCorrect

Explanation

If goods are sent to the branch at selling price, there is no need for a branch trading account, because the profit calculated by headquarters for the branch will be the same as the profit gotten by the branch.

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