The accounting treatment when goods are sent to branch at a cost is, debit branch stock account and credit
Question 1 Report
The accounting treatment when goods are sent to branch at a cost is, debit branch stock account and credit
Answer Details
When goods are sent to a branch, the accounting treatment is to debit the branch stock account and credit the goods sent to branch account. The goods sent to branch account is a nominal account which is used to record the cost of goods sent to the branch. The balance in the account represents the total cost of goods dispatched to the branch and is transferred to the branch stock account on the branch's books. This is done to keep track of the stock sent to the branch and to ensure that it is properly recorded on the branch's books.
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