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