Question

If goods are invoiced to the branch at cost, the trading results of the branch can be ascertained by which of the following methods:
(A) Debtors Method
(B) Trading and Profit and Loss Account (Final Account) Method
(C) Stock and Debtors Method
(D) Wholesale Branches Method

• A. (A), (B), and (D) only
• B. (A), (B), and (C) only
• C. (B), (C), and (D) only
• D. (C), (D) only

Hint:

Use the method best suited to the complexity and size of the branch operations

Answer 1

The Correct Option is B

-The trading results can be obtained by:
1. Debtors Method. Focus on credit sales and receivables.
2.Final Account Method. Comprehensive profit and loss evaluation.
3. Stock and Debtors Method. Simplifies branch accounting by consolidating inventory and receivables.