Question

Branch trading and profit and loss Account is prepared to incorporate all

Answer 1

Answer:

revenue and expenses

Explanation:

trading account records all direct expenses, stock , purchases and sales.

profit and loss account records all indirect expenses and incomes.

Answer 2

Branch trading and profit and loss account are prepared to incorporate all Business transactions ( all revenue and expenses).

Explanation:

• The Branch usually prepares the branch trading and profit and loss account because these track records get transferred to head office.
• Branches have to report to the head office regarding all the revenue and expenditure made by the branch in a period.
• Branches are mainly given petty cash to run their day-to-day expenditures and mainly the big transactions are handled by head office.
• Branch trading and profit and loss accounts record all the opening and closing assets and liabilities, sales and depreciation of assets, any abnormal transaction, etc.,