The adjustment entry for goods in transit is passed in the books of
A)Either the branch or the head office
B)Branch as well as Head office
C)Only Branch account.
D)Only Branch account

Question

Quizplus · Accepted Answer

Goods in transit are typically recorded by the entity that has legal ownership of the goods at the time. This can be either the branch or the head office, depending on the terms of the shipment (e.g., FOB shipping point or FOB destination) and the specific agreement between the branch and head office.

The Adjustment Entry for Goods in Transit Is Passed in the Books