Chapter 20 Branch - Centralised

What is the main purposes for the Head Office to keep all the branch accounts?

• Record change in assets, liabilities and capital

• Find the cost of sales of each branch

• Ascertain the profitability of each branch

• Check whether there are inventory losses at the branches

If all the books are kept by the head office, what is the main responsibility of the branch?

• To keep a few memorandum

• To keep the records for non-current assets bought

• To calculate its profit and loss at the end of the financial year

• To send its source documents to the head office regularly

Which of the following is not recorded in the Branch Inventory account in the ledger of the Head Office?

• Goods bought by head office

• Goods returned by Branch Debtors to Branch

• Goods returned by Branch to Head Office

• Goods sent to Branch by Head Office

What is the double entry if goods are returned from the Branch to the Head Office?

• Dr. Goods Sent To Branch

• Cr. Branch Inventory

• Cr. Goods Sent To Branch

• Dr. Branch Inventory

What is the cost price of the below transaction, if goods are sent to branch at cost plus 25%.

Goods sent to branch, at selling price RM 25,000

• RM 20,000

• RM 6,250

• RM 31,250

• RM 18,750

What is the double entry if discount was allowed for branch debtor?

• Dr. Branch Adjustment

• Cr. Branch Account Receivable

• Dr. Branch Profit And Loss

• Cr. Branch Inventory

Which of the following should not be treated as abnormal loss?

• goods withdrew as sample for customers

• goods destroyed by fire

• goods were stolen by staff

• goods destroyed by flood

What is the double entry of normal loss?

• no entries are required

• Cr. Branch Inventory

• Dr. Branch Profit And Loss

• Dr. Branch Adjustment

Which of the following is not required to record in the Branch Adjustment Account?

• Price Reduction

• Abnormal Loss

• Credit Sales

• Goods Sent To Branch

Which account is used for transactions concerned with head office supplying resources to the branch?

• Branch Inventory

• Consignment

• Joint Venture

• Hire Purchase Vendor