WAEC Accounting 2010 Paper

Concept:Goods transferred to a branch at cost are recorded as an internal transfer, not as a sale.Explanation:When the head office sends goods to the branch at cost, the branch stock account is debited.This debit records the value of goods now held by the branch.The corresponding credit is made to the goods sent to branch account.This account is used because the goods are only being transferred, not sold.Thus, the required entry is:Debit: Branch Stock AccountCredit: Goods Sent to Branch AccountAnswer:Option B. Goods sent to branch account.