The accounting entries for goods stolen in branch will be to debit

Assessment: JAMB UTME - Principles of Accounts - 2017 Subject: Financial Accounting

Question 1 Report

The accounting entries for goods stolen in branch will be to debit
Answer Details
A branch account is a small part of business account operating with some degree of independence . It maintains its own personal/self accounting entries to determine the profit/loss made by a specific period of time

The accounting entries is to debit profit and loss account and credit branch stock. The profit and loss is debited because the cost of the stolen goods must be charged against the profit for the period to balance the account and the branch stock account is credited because the cost of the goods is out of the branch already.

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