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
Correct Answer: Option A
A. Head office transactions with the branch
Explanation
Branch current account: This account is maintained in the head office books to record all transactions between head office and branch. This 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
