explain the different system of maintaining the accounts of a dependent branch. how profit is ascertained under each system? discuss
Answers
Answered by
1
The records of the dependent branch are kept up by the Head Office in any of the accompanying ways;
1. Account holders System
2. Stock and Debtors System
3. Last Account System
4. Discount Branch System
1. Account holders System:
Under this framework the Head Office opens one Branch Account to record different exchanges with the Branch. Branch Account is kept up as a Debtor Account. In the books of the Head Office, Branch Account is charged with the merchandise provided and all costs met by Head Office and credited with all settlements and returns, like Customers Account.
In this way, the framework can be called Debtors System or One Account System. The abundance of the credit over its charge speaks to a benefit or the other way around, and is exchanged to General Profit and Loss Account of Head Office. Branch Account is set up in the books of Head Office and is a Nominal Account.
From the bookkeeping perspective, the accompanying are the further arrangements:
(a) Branches get products from Head Office at cost and are approved to offer them for money as it were.
(b) Branches get products from Head Office at cost and are approved to offer them for money and in addition on layaway.
(c) Branches get merchandise from Head Office at cost in addition to certain rate.
(A) Branches Received Goods from Head Office at Cost Price and are Authorized to Sell them for Cash as it were:
The accompanying diary sections are passed in the books of the Head Office for recording distinctive Branch exchanges:
Diary Entries of various Branch exchanges
The above diary sections are posted in the Branch Account. The Branch Account shows up as takes after:
Diary Entries of Branch Account
A basic branch Account in the books of the Head Office shows up as given above.
The accompanying passages may likewise be considered when there is opening equalization and shutting parity of stocks furniture, Outstanding costs, Pre-paid costs and so on.
1. Account holders System
2. Stock and Debtors System
3. Last Account System
4. Discount Branch System
1. Account holders System:
Under this framework the Head Office opens one Branch Account to record different exchanges with the Branch. Branch Account is kept up as a Debtor Account. In the books of the Head Office, Branch Account is charged with the merchandise provided and all costs met by Head Office and credited with all settlements and returns, like Customers Account.
In this way, the framework can be called Debtors System or One Account System. The abundance of the credit over its charge speaks to a benefit or the other way around, and is exchanged to General Profit and Loss Account of Head Office. Branch Account is set up in the books of Head Office and is a Nominal Account.
From the bookkeeping perspective, the accompanying are the further arrangements:
(a) Branches get products from Head Office at cost and are approved to offer them for money as it were.
(b) Branches get products from Head Office at cost and are approved to offer them for money and in addition on layaway.
(c) Branches get merchandise from Head Office at cost in addition to certain rate.
(A) Branches Received Goods from Head Office at Cost Price and are Authorized to Sell them for Cash as it were:
The accompanying diary sections are passed in the books of the Head Office for recording distinctive Branch exchanges:
Diary Entries of various Branch exchanges
The above diary sections are posted in the Branch Account. The Branch Account shows up as takes after:
Diary Entries of Branch Account
A basic branch Account in the books of the Head Office shows up as given above.
The accompanying passages may likewise be considered when there is opening equalization and shutting parity of stocks furniture, Outstanding costs, Pre-paid costs and so on.
Answered by
3
The dependent branches are operated by Main branch only.All the transactions done by the dependent branches are operated by the head quarter only.All the money received is transfered to main branch.Such branches do not maintain balance sheets and profit and loss accounts
but the only accounts that they maintain are as under:-
1)Cash books-All the cash transactions are recorded here.
2)Stock register-Here the transactions related to stick are maintained
3)Sales book-All the transactions related to sales are maintained here.
However profit is ascertained by following methods here-
1)Debtors method
2)Stock and debtors account
3)Final accounts method
4)Wholesale accounts method
but the only accounts that they maintain are as under:-
1)Cash books-All the cash transactions are recorded here.
2)Stock register-Here the transactions related to stick are maintained
3)Sales book-All the transactions related to sales are maintained here.
However profit is ascertained by following methods here-
1)Debtors method
2)Stock and debtors account
3)Final accounts method
4)Wholesale accounts method
Similar questions