Use the information below to answer questions Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch. S...

Answer Details

The cost of goods credited to the head office trading account is the sum of the cost of goods sent to the branch and the cost of returns to the head office deducted from the cost of opening stock at the branch and the cost of closing stock at the branch. Using the figures given: Cost of goods sent to branch = ₦8000 Cost of returns to head office = ₦340 Cost of opening stock = ₦400 Cost of closing stock = ₦720 Therefore, cost of goods credited to head office trading account = (₦8000 + ₦340) - (₦400 + ₦720) = ₦7660 Hence, the answer is ₦7660.