Features of independent branches
Answers
Answer:
(1) The branch does not maintain its own set of books.But the head office maintain record of all transactions in respect of branch
(2) Goods are received from the head office.However, the outside purchases by branch are not allowed
(3) Goods are often supplied by head office at cost price. But sometimes they are sent at invoice price or loaded price
(4) All expenses of regular nature directly paid by head office through cheques
(5) All petty expenses at branch are paid by the branch manager from the petty cash received in advance from the head office
(6) Usually branch makes sales on cash basis.But in certain cases credit sales may be made with the authorization from the head office
(7) Cash received on account of cash sales and from debtors is duly remitted to head office or d eposited with a local bank in the account of head office
I hope to helpful for you like and comments
Answer:
FEATURES OF INDEPENDENT BRANCHES
These branches make purchases at its own and make sales.
OWN SET OF BOOKS ARE MAINTAINED:
The independent branches make their own set of books. The books are kept on the double entry system. The journal, ledger, subsidiary books are maintained of each branch separately.