Concept:Under the cost method, the branch stock account is used to find the branch gross profit as a balancing figure.
Explanation:In the cost method, goods are sent to the branch at cost price.
The branch stock account is debited with the opening stock and the goods sent to the branch.
Its credit side shows sales and the closing stock.
The credit balance of this account equals
Sales−Cost of Goods Sold.
Thus, the credit balance represents the branch gross profit.
This profit is not shown in the goods sent to branch account, branch debtors account, or branch stock adjustment account.
It is disclosed in the branch stock account.
Answer:C. branch stock account