Branch Account under Debtors System is?

Why Branch Account under Debtors System is Nominal Account?

• According to this, a Branch Account is created in the ledger of the main office for each branch.
• This account serves as a record for all transactions.
• The Branch Account is created in a manner that makes the branch’s profit or loss clear.
• A branch account is fundamentally a nominal account.
• A branch may get items from the head office at either the “selling price” or the “cost price.” Entry in Journal Using Debtor Approach.

Summary:

Branch Account under Debtors System is? (a) Real Account (b) Personal Account (c) Nominal Account (d) Liability Account

Nominal Account is the Branch Account under the Debtors System. It is appropriate for small-size branches. The branch account shows the profit and loss of a branch. It is a temporary or nominal ledger account.