Branch Accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 21:

• JAMB 2005

In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a?

A. Debit entry
B. Credit entry
C. Contra entry
D. Reversal entry

Question 22:

• JAMB 2006

Head office sends goods to its branch at cost plus mark-up of of 25%. A debit of N40,000 to the branch stock account in the head office books will indicate that the head office has sent goods with a profit of

A. N4000
B. N6000
C. N10000
D. N8000

Question 23:

• JAMB 2007

Use the information below to answer question
Stock (1/1/02) at selling price..........N2000
Goods sent to branch (selling price).....N?
Sales by branch (selling price)..........N4500
Stock (31/12/02).........................N?
Opening stock is 1/4 of goods sent to branch.
Determine the closing stock?

A. N5 500
B. N6 500
C. N2 500
D. N4 500

Question 24:

• JAMB 2007

Use the information below to answer question .
Stock (1/1/02) at selling price..........N2000
Goods sent to branch (selling price).....N?
Sales by branch (selling price)..........N4500
Stock (31/12/02).........................N?
Opening stock is 1/4 of goods sent to branch.
The value of goods sent to branch is?

A. N4 000
B. N6 000
C. N8 000
D. N2 000

Question 25:

• 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