The branch expenses paid by the head office is recorded in the books by debiting branch?
- bad debt account and crediting branch debtor's account
-
expenses account and crediting bank account
- profit and loss account and crediting branch stock account
- discount allowed account and crediting branch debtors' account
The correct answer is: B
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
From the above explanation, we would debit expenses account and crediting the bank account