JAMB - Accounts Principles Of Accounts (2025 - No. 34)
The transfer of goods between departments is recorded by debiting
stock account and crediting trading account
trading account and crediting purchases account
the receiving department and crediting the giving department
the giving department and crediting the receiving department
Explanation
When goods are transferred between departments, the receiving department is debited (receiving an asset), and the giving department is credited (giving up an asset). This follows the double-entry principle. Therefore, the correct treatment is debiting the receiving and crediting the giving department.
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