JAMB - Accounts Principles Of Accounts (2010 - No. 30)
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
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
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