Question

Distinguish between branch accounts and departmental accounts

Answer 1

Answer:

Departmental accounting presents the trading results of each individual department. Branch accounts present the trading results of each individual branches. Departmental accounting is practically a segment of accounts. Branch accounts are a condensation of accounts.Allocation of departmental common expenses is a tough job. ... To find out the net result of the organization, the reconciliation of different branch account is a main job.In departmental accounting, no reconciliation is necessary because there is a central account division.

Answer 2

Answer: 1. Those accounts which are prepared to ascertain the profit or loss of a branch are known as branch accounts while those accounts which are prepared to ascertain the profit or loss of a department are known as departmental accounts

2. Different type of accounts are prepared for different types of branches but it is not in the case of departments

3. Branches are geographically scattered but not the departments.

Explanation: