Goods worth Rs. 60,000 have been sent by the Head Office, but the Branch has received till the closing date goods worth Rs. 50,000 only. What is the journal entry in the books of the Branch for goods-in-transit of Rs. 10,000?
1
Goods-in-transit A/c dr. Rs. 10,000
To Branch Account Rs. 10,000
2
Goods-in-transit A/c dr. Rs. 10,000
To Head Office Account Rs. 10,000
3
Head Office A/c dr. Rs. 10,000
To Goods-in-transit A/c Rs. 10,000
4
Head Office A/c dr. Rs. 10,000
To Branch Account Rs. 10,000