To record the transfer of stock from one department to another, the correct entry would be to debit?

  • A goods outwards and credit goods inwards
  • B merchandise account and credit department stock account
  • C department transfering and credit department receivving
  • D department receiving and credit department transfering
jamb 1999accounting

The correct answer is D. department receiving and credit department transfering

This is because the department receiving the stock sees an increase in its assets (stock), which is recorded as a debit.

On the other hand, the department transferring the stock sees a decrease in its assets, which is recorded as a credit

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