Question

Which sales are recorded in branch account under debtors system?

Answer 1

As opening balance of debtors is debited to Branch Account and branch account is credited with Closing Balance of Debtors together with Cash Received from Debtors, amount of credit sales has automatically been adjusted. So, the same will not appear in Branch Account.Under the Debtors System, the profit or Joss can be found out by preparing a Branch Account in the books of Head Office. The Branch Account has been treated as a customer, a personal account in an impersonal name. This type of accounting treatment works well in small Branches.

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Answer 2

Credit sales are the appropriate answer.

Explanation:

• Under the debtors' system in department a/c, credit score income is Financial Accounting ·
• In case of shortage, below inventory and borrowers machine the income detail is debited.
• As starting stability of borrowers is debited to Branch Account and the department account is credited with Closing Balance of Debtors collectively with Cash Received from Debtors, a quantity of credit score income has mechanically been adjusted.
• So, the identical will now no longer seem in Branch Account. Under the Debtors System, the income or Joss may be determined out via way of means of getting ready a Branch Account withinside the books of Head Office.

The Branch Account has been handled as a customer, a private account in an impersonal name. This sort of accounting treatment works nicely in small Branches.

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