Question

Goods Sent By Head office At The End of the Year But Not Recived By Branch Before The Year ended Is Known As​

Answer 1

Answer:

Stock in transit

Explanation:

As these goods can't be termed as normal stock because they are not physically present either at the head office or at the branch.

Answer 2

Goods Sent By Head office At The End of the Year But Not Received By Branch Before The Year ended Is Known As​ Goods In Transit.

• The term generally refers that the goods are being shipped by the Seller but have not been received by the Buyer.
• This is a concept of a subject known as Branch Accounting. Here an account called as "Goods Sent To Branch Account " is maintained by the Head Office to know the total goods sent to the Branch in the particular period.
• Normally the entry of goods is recorded only when they are actually purchased and reaches us.
• But if it is the end of the year and the goods are yet to be received , certain attention is given to this concept.
• The Goods in Transit is shown on Asset Side under the heading of Current Assets sub heading "Inventories"
• The ownership of goods in transit depends upon the sales term:

1. If the terms state FOB Shipping Point then the ownership is of the buyer.
2. If the terms state FOB destination then the ownership is of the seller.

#SPJ3