To account for expenses paid by head office on behalf of the branch, the branch should___________

To account for expenses paid by head office on behalf of the branch, the branch should___________

A Debit profit and loss account and credit head office account

B Debit head office account and credit cash

C Credit cash and debit profit and loss account

D Credit profit and loss account and debit head office account

Answer is A

At the head office, expenses incurred on behalf of the branch will also be debited to the branch account. Also, in the branch books, there will be head office accounts.