The cost of goods returned by branch to head office is debited

The cost of goods returned by branch to head office is debited

  • A.
    Branch stock adjustment account
  • B.
    Goods sent to branch account
  • C.
    Branch stock account
  • D.
    Branch profit and loss account
Correct Answer: Option C
Explanation

The head office will debit the particular branch asset (Branch Machinery, Branch Furniture, or Branch Building, branch stock account etc.) and credit Cash.

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