A. debited to the head office current account
B. debited to the branch current account
C. credited to the head office current account
D. credited to the branch current account
Correct Answer:
Option B – debited to the branch current account
Explanation
Goods sent to the branch is recorded at the debit side of the branch stock account. Goods returned to head office and closing stock is shown at the credit side of this account. The excess of debit over credit is shortage. The excess of credit over debit is surplus.
