Question

In case of H.O having many branches, transactions among the branches are called ___________ *​

Answer 1

Answer:

. The books contain an Account called “Head Office Account” or “Head Office Current Account” which is credited with everything received from the Head Office and debited with everything sent to Head Office. That is, all transactions relating to Head Office are recorded in this Account.

Answer 2

In the case of H.O having many branches, transactions among the branches are called "Inter-branch transactions."

Explanation:

• In branch accounting, separate accounts are prepared for each branch of the organization as per the operating area of the branch.
• A branch account is a temporary account that lasts for the accounting period it is opened for.
• At the end of that period, the branch account is closed by transferring the year-end balances to the head office (H.O.).
• If the head office (H.O.) has many branches, transactions among the branches are called "Inter-branch transactions."
• Example of Inter-branch transaction: cash or goods transferred by one branch to another or any expense paid by one branch on behalf of another.