Cash stolen from branch-taking is recorded in the Head Office books by debiting?

A. defalcations account and crediting branch stock account
B. mark-up account and crediting branch stock account
C. defalcations account and crediting profit and loss account
D. cash account and crediting branch stock account
E. branch stock account and crediting defalcations account

Correct Answer:

Option A – defalcations account and crediting branch stock account