The branch current account records
-
A.
Head office transactions with the branch -
B.
Branch transactions with the head office -
C.
Goods sent to branch at selling price -
D.
Cash received from branch as sales
Correct Answer: Option A
Explanation
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