Question

under stock and debtors method branch stock account helps to​

Answer 1

Explanation:

Answer:Sometimes in addition to above, Branch Cash Account, Branch Expenses; Branch Fixed Assets Account etc. may also be opened. It may be recalled that Branch Stock Account, Branch Debtors Account, Branch Cash Account, Branch Expenses Account, Goods Sent to Branch Account have been explained in detail, So, in order to avoid repetition we will only explain here in detail, the most significant and important account under Stock-Debtors System i.e., Branch (Stock) Adjustment Account.

Practically Branch (stock) Adjustment Account deals with the loading on the respective items of goods relating to Branch Stock Account. In short, loading is to be computed on Opening Stock at Branch, Closing Stock at Branch, Goods sent to Branch, Goods Returned by Branch, Shortage of Stock, Surplus of Stock, Lost-in-Transit, Pilferage of Stock, Wastage of Stock, or any Normal and Abnormal Losses.

Branch Stock Adjustment Account is prepared at Invoice Price. The difference between the two sides of this account reveals either gross profits (if credit side to greater than the debit side) or gross loss (if debit side is greater than the credit side).

Answer 2

Answer:

The branch stock account in the Stock-Debtors system reflects the branch's closing stock at invoice price at the end of the year.

Explanation:

• Instead of one branch account, many accounts are opened in the books of the head office.
• Greater supervision of the financial activity of the branch can be imposed by opening detail accounts for multiple transactions.
• The profit or loss can be determined under the Debtors System by preparing a Branch Account in the Head Office's accounts.
• The Branch Account was considered as if it were a customer, a personal account with an anonymous identity.

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