Accountancy, asked by SOUMYABELEL1073, 1 year ago

Difference between branch accounting and departmental accounting by murthy

Answers

Answered by geniuseinsteinn
4
Departmental trading with their Head Office is conducted under the same roof although each department deals with a separate line of activity.

2. The chief executive who is to keep a constant watch over the departments supervises closely and controls effectively.



3. Functional division is possible in case of departmental trading which is a must for the existence of a department.

4. Allocation of common expenses is the primary consideration in case of a departmental trading.

5. Departmental accounting presents the trading results of each individual department.

6. Departmental Accounting is practically a segment of accounts.



7. Departmental accounting is centrally maintained.

Difference # Branch Accounts:

1. Branch trading is conducted in different parts of the country under the Head Office dealing with usually the same line of activity.

2. Control is practically un-practicable in case of a far-off branch since it is not possible for the Head Office to keep a constant watch.

3. It is not possible in case of a branch trading.

4. Allocation of common expenses does not arise in case of branch accounting.

5. Branch accounting presents the trading results of each individual branch.

6. Branch Accounting is a condensa­tion of accounts.

7. Branch accounting depends on the type of branch. In case of depart­ment branch, H.O. records all necessary accounts, but in case of independent branch, branch records its own accounts.


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