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    Question

    тАШGoods in transitтАЩ sent from Head Office are shown

    in the balance sheet at тАУ┬а
    A Head office Correct Answer Incorrect Answer
    B Branch Correct Answer Incorrect Answer
    C Both A and B Correct Answer Incorrect Answer
    D None of above Correct Answer Incorrect Answer

    Solution

    In Head OfficeтАУBranch accounting, when goods have been sent by the Head Office but have not yet been received by the Branch, they are treated as Goods in Transit. Where are they shown in the Balance Sheet? тАв They belong to the Head Office, because the goods are still with the Head Office until the Branch receives them. тАв Therefore, they are shown as an asset in the Head Office books under current assets.

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