The branch current account records?

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