Question

What do you mean by dependent branch? What are the rules for making accounting record of dependent branches?

Answer 1

Answer:

In a dependent branch, each branch does not maintain separate accounts. The head office at the corporate headquarters will manage the individual profit and loss statements as well as the balance sheets.

The most important rule for making accounting records of dependent branches is following the same pattern and rules while recording the financial transactions in the various books of accounts. All the financial transactions are recorded in a detailed manner which is then posted into the respective accounts.