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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____________
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  • 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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