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SSC Financial and Cost Accounting P-1 QUESTION #9646
Question 1
Under the Debtor System of Branch Accounting, the Branch Account in the books of the Head Office is debited with:
  • Closing stock at branch
  • Cash received from branch
  • Goods returned by branch
  • Opening stock at branch and goods sent to branch✔️
Correct Answer Explanation
The Branch Account is debited with opening assets (including opening stock), goods sent to branch, and cash sent to branch. Closing assets are credited, and cash/goods received from branch are also credited. The balancing figure represents branch profit or loss.