WAEC Accounting 2014 Paper

Concept:Stock is valued at cost in the balance sheet, so the mark-up included in the selling price must be removed.Explanation:The branch stock account is recorded at selling price: $\text{D}\,346,000$ (debit).The branch mark-up account represents unrealised profit in that stock: $\text{D}\,62,000$ (credit).Stock at cost = selling price $-$ mark-up.$$= \text{D}\,346,000 - \text{D}\,62,000$$$$= \text{D}\,284,000$$This is the value to include in the balance sheet.Answer:$\text{D}\,284,000$