Difference between branch accounting and departmental accounting
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Difference # Departmental Accounts:
1. 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.
ADVERTISEMENTS:
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.
ADVERTISEMENTS:
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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____________________________
Difference # Departmental Accounts:
1. 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.
ADVERTISEMENTS:
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.
ADVERTISEMENTS:
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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