Question:
Which of the following transactions will not be recorded in the Branch Account maintained by the Head Office under the Debtors System?
Which of the following transactions will not be recorded in the Branch Account maintained by the Head Office under the Debtors System?
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Debtors system focuses on sales and cash flows via debtors.
Updated On: Sep 18, 2025
- Goods sent by head office to branch
- Goods sold by branch to customers
- Cash sent by branch to head office
- Payment of branch expenses directly by head office
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The Correct Option is D
Solution and Explanation
Under Debtors System, transactions between branch and customers are recorded. Expenses paid directly by head office are not recorded in branch account.
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