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SSC Financial and Cost Accounting P-1 QUESTION #9648
Question 1
Under the Stock and Debtors system of Branch Accounting, the Branch Stock Account is maintained at:
  • Cost price throughout
  • Selling price for sales and returns; pro-forma invoice price for all other entries✔️
  • Pro-forma invoice price for all entries
  • Cost price for opening and closing stock; selling price for goods sent
Correct Answer Explanation
Under the Stock and Debtors system, branch stock account records sales to customers and sales returns at selling price, while all other entries (opening/closing stock, goods sent, goods returned to HO) are recorded at pro-forma invoice price.