Question

Difference between branch debtors account and memorandum branch debtors account

Answer 1

Answer:

Sales on credit, bad debts, allowed discounts, returns of debtors to the branch are not direct transactions from the head office and are therefore not recorded in the branch account. However, these elements will be taken into consideration when determining the amount of the Closing or Opening Balance of the Debtors or the Cash Received from the Debtors in the Debtors Account of the Memorandum Branch.

In summary, the above items are not shown in the Branch Account, however; The net effect of these items is automatically granted in the Branch Account by showing opening Accounts Receivable. Closing debtors and cash received from debtors.

ation:

Answer 2

Difference between branch debtors account and memorandum branch debtors account:

Branch debtors Account:

• A branch debtors account is a type of account that’s created to increase control over the branch debtors.
• This account is allowed to maintain when different branches are allowed to sell goods and services on credit in particular.
• The Branch debtors account is similar to the sundry debtors accounts in terms of preparation.

Memorandum Account:

• A Memorandum account is prepared to assess and evaluate the missing information just like every other memorandum account.
• With the help of the memorandum account, we can access the required opening or closing balances that is been missing in the given account.
• It helps to trace out the required information.