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SSC Financial and Cost Accounting P-1 QUESTION #9662
Question 1
In which system of branch accounting are the accounts Branch Stock Account, Branch Debtors Account, Branch Adjustment Account, and Branch Stock Reserve Account all simultaneously maintained?
  • Debtor System
  • Income Statement System
  • Stock and Debtors System✔️
  • Independent Branch System
Correct Answer Explanation
The Stock and Debtors System uses all six accounts: Branch Stock Account, Branch Debtors Account, Branch Expenses Account, Branch Adjustment Account, Goods Sent to Branch Account, and Branch Stock Reserve Account. This system is used when goods are sent at pro-forma invoice price and the branch is large.