Question

Under the 'Debtors' method, Depreciation on fixed assets at the branch
A) Will be debited to Depreciation A/c and credited to the Branch A/c
B) Will be recorded by the branch in its Memorandum A/c
C) Will be debited to Branch A/c and credited to HO A/c
D) Will be debited to HO A/c and credited to the Branch fixed​

Answer 1

They will be recorded in the Memorandum A/c

• The Branch account does not represent depreciation of Branch fixed assets.
• The account, on the other hand, shows the opening balance of fixed assets and the closing balance of fixed assets after depreciation.
• Since, they are not recorded in the branch account or H/o account, they are thus recorded by the branch in its Memorandum A/c