To record surplus representing excess of selling price over invoice price, the entry would be:
1
Branch Stock Account Dr. (Excess of selling price over Invoice price)
To Branch Adjustment Account
To Branch Adjustment Account
2
Branch Stock A/C Dr. (total surplus)
To Branch Adjustment A/C (loading)
To Branch Profit and Loss A/C (cost)
To Branch Adjustment A/C (loading)
To Branch Profit and Loss A/C (cost)
3
Both 1 and 2
4
Either 1 or 2