In the head office ledger, the value of goods sent to the branch are____________

In the head office ledger, the value of goods sent to the branch are____________

  • A.
    Debited to the branch current account
  • B.
    Debited to the head office current account
  • C.
    Credited to the head office current account
  • D.
    Credited to the branch current account
Correct Answer: Option B
Explanation

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

  i. Goods sent to branch

  ii. Expenses of the branch paid by the head office

  iii. Profit of the branch

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