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To account for expenses paid by head office on behalf of the branch, the branch ...

To account for expenses paid by head office on behalf of the branch, the branch should___________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Debit profit and loss account and credit head office account
  • B Debit head office account and credit cash
  • C Credit cash and debit profit and loss account
  • D Credit profit and loss account and debit head office account
Correct Answer: Option A
Explanation:
The head office maintains a book, (branch account) more or less like other personal accounts, so that any expenses incurred on behalf of the branch will also be debited to the branch account. Similarly, in the branch books, there will be head office accounts

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