When goods are received from head office, head office will be credited while

When goods are received from head office, head office will be credited while

  1. sales will be debited
  2. issue will be debited
  3. purchases will be debited ✓
  4. requisition will be debited

Explanation

From the branch’s perspective, receiving goods from head office is like making a purchase. The branch debits purchases account to show inventory received. Head office is credited because you owe them for the goods.

Sales account is for selling goods to customers, not receiving them. Issues and requisitions are internal requests, not accounting entries for goods received.

Remember: Debit what comes in (purchases). Credit who gave it (head office).