Question

Cash sent to branch expenses: Rent Rs. 12000, Salaries 36000, Petty Cash 7,000 what will be total amount of cash sent to branch?​

Answer 1

SOLUTION :

❒ Given :-

• Cash sent to branch expenses : Rent Rs. 12000, Salaries Rs. 36000, and Petty Cash Rs. 7000.

❒ To Find :-

• Total amount of cash sent to branch = ?

❒ Calculation :-

• ∴ Total amount of cash sent to branch = Amount of cash sent for Rent + Amount of cash sent for Salaries + Amount of cash sent as Petty cash

➜ Total amount of cash sent to branch = Rs. 12000 + Rs. 36000 + Rs. 7000

➜ Total amount of cash sent to branch = Rs. 55000 ★

• Hence, Rs. 55000 amount of total cash sent to branch.

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KNOW MORE :

• ❍ What is a Branch ?

➲ Sometimes a business house wants to expand its operations by opening more offices or establishments under its own management at other places with a view to going as nearer to the customers as possible. In such case, the main organization establishes one or more offices in different places and each of such office is known as a Branch. Branches are the profit centres for the main organization.

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• ❍ What are the different types of Branches ?

➲ Branches are mainly classified into two types :

• Home or Inland Branch

• Foreign Branch

Again, home or inland branch is sub-divided into two types :

• Dependent Branch

• Independent Branch

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• ❍ What are the needs for Branch Accounting ?

➲ The needs of branch accounting are as follows :-

• Branch accounting is need to maintain in order to get regular information from the branches.

• To ascertain the result of operation by the branch, it is necessary to maintain accouting for the branch.

• Branch accounting is important for the purpose of knowing financial status of the branch.

• To take various decisions regarding the operation of branches by the head office, branch accounting is very important.

• Branch accounting is needed to know when the goods as well as cash are to be sent by the head office to its branches and also to ascertain the rate of return by the brances.