Question

When Branch 'A' send goods to Branch 'B' in the books of Branch 'A' debit is given to​

Answer 1

Answer:

Branch 'B' is debit and branch 'A' is credit

Answer 2

We are asked when goods are transferred from one branch to another what will be debited. The debit will be given to the 'Branch B ' account in the books of 'A.'

• This type of transaction takes place in Departmental accounting.
• So when the stock in one department becomes less the goods or stock kept in the other department is transferred to this department.
• So in the scenario provided to us, Branch B's stock is less and so Branch A is sending or transferring goods to Branch B.
• According to the golden rules of accountancy we are required to debit the person who is receiving the goods and credit the giver of the goods.
• So as Branch B is receiving the goods his account should debit and the stock account should be credited.
• Therefore, the correct answer will be in the books of Branch 'A' debit is given to​ Branch 'B.'

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