Branch accounts in the head office books - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2002

A company operating a chain of retail provision stores invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on selling price?

A. 35%
B. 30%
C. 20%
D. 15%

Question 7:

• JAMB 2003

Use the information below to answer question
Goods from head office................N13,400
Returns to head office ...............N118
Rates and insurance paid .............N188
Wages paid ...........................N913
Cash remitted to head office..........N16,625
Stock at 1/1/2000.....................N1,875
Rents paid ...........................N325
Stock at 31/12/2000 ..................N1,975
Sundry expenses ......................N200
The profit realized from the trade is?

A. N4 069
B. N1 817
C. N1 440
D. N1 328

Question 8:

• JAMB 2003

The amount of each invoiced goods sent to the branch is debited to?

A. Branch expense account and credited to branch debtors' accoount
B. Branch stock account account and credited to the goods sent to branch account
C. Branch debtors' account and credited to branch expense account
D. Goods sent to branch expense account

Question 9:

• JAMB 2003

Gross profit in the branch adjustment account is transferred to the branch?

A. Trading account
B. Receipts and payments account
C. Profit and loss account
D. Income and expenditure account

Question 10:

• JAMB 2004

Discounts granted branch customers are treated as a debit to branch?

A. Stock account and a credit to branch debtors'account
B. Discount account and a credit to branch bank account
C. Stock account and a credit to branch bank account
D. Discount account and a credit to branch debtors' account