BRANCH ACCOUNTS I

When goods are sent to branch --- account is debited

• Branch

• Head Office

• Asset

• Bank

Under Debtors system, Head Office opens only ---- account

• Head Office

• Branch

• Bank

• Purchases

Debtors system is adopted when branch is --- in size

• Large

• Medium

• Small

Under Debtors system --- account is prepared in order to calculate profit

• Branch

• Branch Debtors

• Branch Stock

• Branch Asset

Branch account is prepared in the books of

• Head office

• Branch

When the debit side of a branch account exceeds the credit side, then the difference amount is known as branh -----

• Profit

• Loss

• Liability

Under Debtors system, credit sales are

• Debited to the Branch account

• Debited to Branch debtors account

• Crediting to branch account

In the Balance Sheet closing stock should be shown at

• Invoice Price

• Cost Price

• Selling Price

• Profit

Closing stock is valued at cost or market price whichever is lower. This is based on the principle of

• Conservatism

• Going Concern

• Consistency

• Dual concept

When goods are invoiced to the branch at invoice price, the value of goods is adjusted by

• Debiting Goods sent to branch account

• Crediting goods sent to branch account

• Crediting stock reserve account