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

Question 16:

• JAMB 2007

Goods worth N50 000 were sent at different times from head office to the branch during the year.
By the end of the period, only N40 000 worth of goods had arrived at the branch. Which of the following is correct about the treatment of this transaction?

A. Branch should debit goods received from head ofice with N50 000
B. Head office should debit goods sent to branch account with N10 000
C. Head office should debit goods sent to branch account with N50 000
D. Branch should debit goods received from head office with N10 000

Question 17:

• JAMB 2008

Given:
(i) Cost price (ii) Selling price (iii) Cost plus fixed percentage (iv) Price above cost and selling price
From the information above, the prices used in charging goods to the branches are?

A. I and ii
B. I, ii and iii
C. I, ii, iii and iv
D. Iii and iv

Question 18:

• JAMB 2012

Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

A. Cost price
B. Fixed percentage on cost
C. Selling price
D. Invoice price

Question 19:

• JAMB 2014

If goods are sent to to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of #100,000?

A. #130,000
B. #125,000
C. #80,000
D. #75,000

Question 20:

• JAMB 2014

Hussaina Enterprises sent goods worth #800,000 at cost plus mark-up of 20% to its branch
What is the cost price of the goods sent to the branch

A. #600,000
B. #620,000
C. #640,000
D. #700,000