Question

Which of the following transactions will not be recorded in the Branch Account maintained by the Head Office under the Debtors System?

• A. Goods sent by head office to branch
• B. Goods sold by branch to customers
• C. Cash sent by branch to head office
• D. Payment of branch expenses directly by head office

Hint:

Debtors system focuses on sales and cash flows via debtors.

Answer 1

The Correct Option is D

In the Debtors System, branch-customer transactions are recorded. Head office expenses paid directly are excluded from the branch account.