Question

Define
Accounting & describe
its branches.​

Answer 1

Answer:

Accounting

Accounting is art as well as science for simmering analyzing financial account.

Mark as brainlist plzz

Answer 2

Explanation:

Branch Accounting is the system of the bookkeeping under which the company maintains separate accounts for each of the operating locations or branches of the company and it is followed with the motive of increasing the transparency and knowing the cash flow position and the financial picture of each such location of working of the company.

#1 – Dependent Branch

Dependent branches are those branches that do not maintain separate books of accounts completely, there profit & loss statement and Balance sheets are collectively maintained by the Head office only. Only a few information has been maintained by branches separately like Cash Accounting, Debtors Accounting, and Inventory.

#2 – Independent Branch

Independent branches are those branches which maintain separate books of accounts completely and their profit & loss statement and Balance sheets are maintained separately from their Head office. In this case, Head office and Branches are treated separate entity.

E.g. – If Head Office sending material to its branch then the Head office will record sales in the HO book and raise an invoice in the name of branch and branch will record this as purchase in branch books of accounts.