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Query Details

Asked by Sidant on :Mar. 23, 2017

what are the system of accounting followed by dep…

what are the system of accounting followed by dependent branches?

what are the system of accounting followed by dependent branches?

0

Chiranjibi Mar. 23, 2017

There are three systems of accounting followed by dependent branches:
Debtors System: under this system head office makes a branch account. Anything given to branch is debited and anything received from branch would be credited.
Branch trading and profit and loss account (Final accounts) method /branch account method: Under this system head office prepares (a) profit and loss account (b) branch account taking each branch as a separate entity.
Stock and debtors system: Under this system head office opens the following accounts:
Branch Stock Account
Branch Profit and Loss Account
Branch Debtors Account
Branch Expenses Account
Goods sent to Branch Account
Branch Asset Account
............................
Hope I answered your queries. Best Wishes
CHiranjibi Chapagain

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