Concept:When goods are sent from the head office to a branch, specific branch accounts are opened to record the transfer of stock and the branch trading result.
Explanation:The
Goods sent to branch account is prepared to record the value of stock transferred from the head office to the branch.
The
Branch stock account is prepared to monitor the movement and balance of stock at the branch.
The
Branch adjustment account is prepared when goods are invoiced at selling price, so the profit element or loading can be adjusted.
These accounts are prepared when goods are actually sent to the branch.
However, the
Branch debtors account is not prepared merely because goods were sent to the branch.
It is only prepared when the branch sells goods on credit and the head office needs to control branch debtors.
Therefore, the branch debtors account is the account not prepared in that situation.
Answer:D. Branch debtors account