Why branch adjustment account is prepared?
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Branch adjustment account is prepared with a view to ascertain the gross profit of the branch.
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A branch adjustment account is ready to record the gross benefit or loss of the branch while setting up the last records.
Branch Account is ready in the books of Head Office and is a Nominal Account. The need emerges for branch bookkeeping to find out the benefit of each branch independently for a specific bookkeeping period, to determine whether the branch ought to be extended or shut, to discover the necessity of money and stock for each branch. The essential goals of branch bookkeeping are better responsibility and control since profitability and productivity can be firmly followed at the branch level.
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