FYBAF FA II Branch Accounts Quiz

What is the main purpose of maintaining branch accounts?

• To evaluate branch performance

• To manage inventory

• To increase sales

• To reduce expenses

Which type of branch does not depend on the head office for accounting?

• Remote Branch

• Franchise Branch

• Independent Branch

• Dependent Branch

In the Debtors System, how are transactions between the branch and head office recorded?

• Not recorded at all

• In the General Ledger

• In the Branch Account

• In a separate ledger

Which account is used to record the loading on goods sent to the branch in Debtors System?

• Branch Stock Account

• Goods Sent to Branch Account

• Branch Cash Account

• Branch Profit and Loss Account

What is the treatment of bad debts in the Debtors System (Branch Account)?

• Recorded in the General Ledger

• Recorded in the Profit and Loss Account

• Not recorded at all

• Recorded in the Branch Account

Under Debtors System, the Debtors at close are shown _______.

• On the credit side of the Head Office Account

• On the debit side of the Branch Account

• On the credit side of the Branch Account

• Are not shown in the Branch account

Under Debtors System, the Branch Account is a _______.

• Real Account

• Nominal Account

• Personal Account

• None of the above

The opening balance of Petty Cash at the Branch is Rs.2,000, Amount received from the Head Office for Petty Expenses is Rs.10,000, the closing balance of Petty Cash is Rs. 3,000; Which of the following is the right answer under the Debtors System?

• Rs.9,000 on the Debit side of the Branch Account as Petty Expenses

• Rs.3,000 on the Credit side of the Branch Account as Petty Cash Closing Balance

• Rs.7,000 on the Credit side of the Branch Account as Petty Cash Expenses

• None of the above

Total Sales = Rs. 1,25,000; Credit Sales = Rs. 75,000; Amount collected from Debtors = Rs. 50,000. Find out the amount to be credited in Branch Account as Remittances.

• Rs. 1,25,000

• Rs. 75,000

• Rs. 50,000

• Rs. 1,00,000

The loading (profit) in the opening balance of Branch Stock Account will be recorded in _______ Account.

• Loading Stock

• Stock Reserve

• Loading Reserve

• Branch Reserve