Question

1. What is Branch Accounting? Explain the salient features of Dependent Branches.​

Answer 1

Explanation:

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‣Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization. ... However, branch accounting usually refers to branches keeping their own books and later sending them into the head office to be combined with those of other units.

Firstly let's learn, what does Dependent Branch mean.

‣Dependent Branch: A branch which is dependent upon Head Office mainly for “Goods and Cash”. Books of accounts relating to such branch also will be maintained by Head Office.

Features of Dependent Branches.

1. Branch receives goods from Head Office. Only those goods supplied by Head office will be dealt (sold) by branch. However, in case of need/emergency, the branch may be allowed to make local purchase after getting consent from Head Office. For those purchases, payments may be directly made by Head office or funds transferred to branch.
2. Goods may be supplied to Head office at Cost price / Invoice price
3. Branch normally makes cash sales. In some cases, branch is allowed to make credit sales also to regular/approved customers (with the consent of Head office).
4. Cash sales and collection from debtors are periodically remitted to Head office.
5. Branch accounts will be maintained by Head Office. However Branch maintains memorandum books like petty cash, debtors etc.

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Answer 2

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‣Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization. ... However, branch accounting usually refers to branches keeping their own books and later sending them into the head office to be combined with those of other units.

Firstly let's learn, what does Dependent Branch mean.

‣Dependent Branch: A branch which is dependent upon Head Office mainly for “Goods and Cash”. Books of accounts relating to such branch also will be maintained by Head Office.

Features of Dependent Branches.

Branch receives goods from Head Office. Only those goods supplied by Head office will be dealt (sold) by branch. However, in case of need/emergency, the branch may be allowed to make local purchase after getting consent from Head Office. For those purchases, payments may be directly made by Head office or funds transferred to branch.

Goods may be supplied to Head office at Cost price / Invoice price

Branch normally makes cash sales. In some cases, branch is allowed to make credit sales also to regular/approved customers (with the consent of Head office).

Cash sales and collection from debtors are periodically remitted to Head office.

Branch accounts will be maintained by Head Office. However Branch maintains memorandum books like petty cash, debtors etc.