Question

Branch adjustment account is prepared under which method

Answer 1

need to prepare under stock and debtors method, let us learn what is stock and debtors ... expenses balances also being transferred to branch adjustment account, so the end result 

Answer 2

Branch adjustment account is prepared under Branch Accounting method

• A way of accounting for a business branch as a separate entity with its own assets, liabilities, income, and expenses is known as branch accounting.
• The adjustment account is used to balance discrepancies among the branch's records and the main firm.
• In this case, the branch keeps its own accounting records, but the parent company's financial results are combined with them.
• The branch adjustment account reflects the branch's financial situation as a separate entity and accounts for transactions between the branch and the parent firm.
• The account aids in ensuring the accuracy and consistency of the financial statements of the parent business and the branch as well as the right representation of results in the parent company's financial statements.

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