Concept:Branch stock account is used to ascertain the gross profit of a branch when goods are invoiced at loading price.
Explanation:The branch stock account records all stock movements at invoice price.
The debit side shows opening stock and goods sent to the branch.
The credit side shows sales, closing stock, and stock losses.
By eliminating the loading included in the stock values, the gross profit of the branch can be determined.
This account does not directly give net profit or loss, because branch expenses are not recorded in it.
Thus, the main purpose of a branch stock account is to compute the gross profit of the branch.
Answer:B. gross profit of the branch