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

The correct answer is A. Head office transactions with the branch

Branch current account; This account is maintained in the head office books to record all transactions between head office and branchThis 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

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