Goods stolen at the branch is debited to

A.

Defalcations account

B.

Branch stock account

C.

Branch adjustment account

D.

Branch debtors account

Correct answer is A

Defalcation predominantly refers to the theft, misuse or misappropriation of money or funds held by an official trustee, or other senior-level fiduciary. In this regard a defalcation account will be opened to record the stolen goods.