Concept:When a branch sells goods on credit, the branch gains a receivable from the customer and loses stock from the branch.
Explanation:The head office records all branch transactions.
Goods sold on credit means the branch has given away stock to a debtor.
So, debit the
Branch Debtors Account because the amount receivable from the customer increases.
Credit the
Branch Stock Account because the stock in the branch reduces due to the sale.
This follows the basic rule: debit the increase in asset (debtors), credit the decrease in asset (stock).
Answer:Debit Branch Debtors Account; Credit Branch Stock Account.
Therefore, the correct option is B.