The entries for credit sales at branch where the head office keeps all records are:Debit
The correct answer is B. Branch debtors account; credit branch stock account
The accounting entry for credit sales at the branch would be to debit branch debtors accounts and credit stock account. To understand this better, remember we debit all receipts whether cash or stock (money or goods that come into the business) and credit all payments (money or goods that goes out of the business). People who buy our goods on credits are our debtors and recorded as current assets in the balance sheet, because in future, we expect to collect are payments for the goods.
Previous question Next questionWhat is Exam without Practice? With our customizable CBT practice tests, you’ll be well-prepared and ready to excel in your examsStart Practicing Now
