distinction between branch debtors account and memorandum branch debtors account.
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Credit sales, bad debts, permitted discounts, returns of Debtors to the branch are not direct transactions of the head office and therefore are 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.
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