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: A
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
