Question

. Under branch accounts debtors system, the depreciation of an asset is _______..

. 1.show in debtors account.
2.shown in debit side of branch account.
3.not shown in branch account .
4.shown in credit side of branch account.

Answer 1

Answer:

Depreciation is not shown in branch account. It is recorded separately in branch accounting.

Answer 2

(3) Not shown in branch account.

Branch accounts are prepared by every branch of an organization to keep its record and financial statements so that branch can report these information to the headquarters. Headquarters send petty cash to its branches for daily operations.

Branch accounts can be prepared by several methods:-

1) Debtors method

2) stock and debtor method

3) final accounts method

4) wholesale method

Under debtors method, branch shows all the opening and closing balances of assets and liabilities, stock, expenses, etc. but depreciation is not shown under debtors method. hence, not shown in branch accounts.