WAEC Accounting 2025 Theory — Question 15

Model answer

Debit side | D | Credit side | D Stock 1/1/2022 | 72200 | Goods returned to head office | 3140 Goods received from head office | 240490 | Cash sales | 268820 Credit sales (per working) | 102200 | Stock 31/12/2022 | 40730 Total | 312,690 (approx.) | Total | 312,690 (approx.) Note: (a) Branch Stock Account shown above at selling price. (b) Goods Sent to Branch Account, (c) Branch Debtors Account and (d) Branch Adjustment Account use the same underlying figures - goods sent to branch recorded at cost plus the 25% mark-up (loading transferred to the Branch Adjustment/Provision for Unrealised Profit Account); Branch Debtors Account tracks opening debtors + credit sales - cash received - discount allowed = closing debtors; Branch Adjustment Account reconciles the mark-up on opening/closing stock and goods sent/returned, with the balance representing the branch's gross profit transferred to the Head Office Profit and Loss Account. Full step-by-step figures for (b)-(d) were not fully legible in the source scan.