Question

Explaination of Objectives of branch accounting

Answer 1

OBJECTIVES OF BRANCH ACCOUNTS

(1) To know the profit or loss of each branch
(2) To know the financial position of each branch
(3) To control the activities of the branch
(4) To find out the requirement of goods or cash for each branch
(5) To provide concrete suggestions for the improvement in the working of different branches
(6) To compare the performance of one branch with that of another branch
(7) To meet the statutory requirements 

Answer 2

Objectives of branch accounting :-

♥ To know the profit or loss of each branch separately .

♥ To ascertain the financial position of each branch separately on a particular date .

♥ To know the cash & goods requirements of the various branches .

♥ To calculate commission for payment to the managers .

♥ To give concrete suggestions for the improvement in the working of the various branches .

♥ To meet the requirements of specific enactments as all branches of a company must keep theaccounts for audit purpose .

♥ To evaluate the progress and performances of each branch .