Question

Goods sent by the head office to the branch,
but not received by the branch till closing
date of accounts year. In this case, head
office will place credit to :
(A) Goods in transit account
(B) Trading account
(C) Branch account
(D) Goods sent to branch account
​

Answer 1

Answer:

A-Goods in transit account

Explanation:

Goods in transit ac

Answer 2

Option A is correct i.e. Goods in transit account.

Goods sent by the head office to the branch, but not recieved till closing date of account years. In this case, head office will place credit to Goods in Transit Account.

Goods in transit means goods which are sent by the one person but is not recieved to purchaser which means it is on their way to reach , is shown in goods in transit account.

Branch Account is a account prepared by head office in whch they write all the trasaction done by head office as well as branch for example like goods sent by branch and cash paid to head office.

Goods sent to branch account which is prepared by head office and it shows how much goods is given to branch till date.