Professional Documents
Culture Documents
Domestic Foreign
Debtors system
Stock and
(Nutshell
Debtors system
approach)
(Analytical
(Synthetic
approach)
approach)
(1) Domestic Branch:
If both “Head Office and Branch”
are located in the same country, it is
referred to as “Domestic Branch”
(2) Foreign Branch:
If Head Office is located in one country and
Branch Office is located in another country,
it is referred to as “Foreign Branch”
- Fixed Assets if any. Xxx By Good Sent to Branch – Removal of loading on net Xxx
To Profit & Loss A/c (Profit) xxx By Profit and loss A/c (Loss) xxx
Stock and Debtors System
S. Transactions Journal Entries
No.
1.* Goods Send to Branch at Branch Stock A/c (IP) Dr.
Invoice Price To Goods Send to Branch A/c (CP)
To Branch Adjustment A/c(loading)
2. Cash Sales at Branch Branch Cash A/c Dr.
To Branch Stock A/c
3. Credit Sales Branch Debtors A/c Dr.
To Branch Stock A/c
4. Sales Return Branch Stock A/c Dr.
To Branch Debtors A/c
5. Discount Allowed and Bad Branch Expenses A/c Dr.
Debts written off To Branch Debtors A/c
6. Cash collected from Branch Cash A/c Dr.
Debtors To Branch Debtors A/c
* Note: Reverse the Journal Entry in case of Return of Material to the Head Office.
Stock and Debtors System