WAEC Accounting Past Questions & Answers - Page 93

Virement is the transfer of money from one account to another or from one section of a budget to another.

Local government revenue comes from property, sales, and other taxes; levies, dues, charges and fees; and transfers from federal and state governments.

The head office will debit the particular branch asset (Branch Machinery, Branch Furniture, or Branch Building, branch stock account etc.) and credit Cash.

Branch current account; This account is maintained in the head office books to record all transactions between head office and branch. This account is debited with the following

• Goods sent to branch
• Expenses of the branch paid by the head office
• Profit of the branch

This account is credited with the following

• Cash received from the branch
• Goods returned by the branch

The accounting entry for credit sales at the branch would be to debit branch debtors accounts  and credit stock account. To understand this better, remember we debit all receipts whether cash or stock (money or goods that come into the business) and credit all payments (money or goods that goes out of the business). People who buy our goods on credits are our debtors and recorded as current assets in the balance sheet, because in future, we expect to collect are payments for the goods.