Question

synthetic method of branch accounting ​

Answer 1

Debtors or Direct Method  Under this method, HO opens only one account for every branch, called “Branch Account”.  Branch Account is a combination of Personal Account (of a Branch as a debtor) and nominal account (as it is prepared to ascertain profit or loss made by the Branch).

Answer 2

many accounts are created in the books of the head office.

When products are supplied at cost or tendering contractors will be pricing (common adjustments), the branch account's opening balances are debited, including stock, debtors, pocket money, and other financial assets (if any). Creditors' opening balances are paid to the branch account, as are any outstanding expenses (if any). Analytical approach for branch accounting is used to exercise more ensures that issues over a branch's operations.