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BRANCH ACCOUNTING
Branch
: A branch is a separate segment of a business. In order to increase the sales, business houses arerequires to market their products over a larger territory and may generally split their business intocertain divisions or parts. These various parts or divisions may be located in different part of the samecity or in different cities of the same country or in different countries in the world. These are known asbranches. The head office controls the activities of various branches.
Branch accounting
: Branch accounting is the process through which the accounting system of a branchis maintained.
Objectives of branch accounting
: The main objects of branch accounts are dependent on the nature of the business and specific need of a particular branch. The objectives of keeping the branch accountsacceptable to all businesses are as follows.1.
To know the profit or loss of each branch separately.2.
To ascertain the financial position of each branch separately on a particular date.3.
To know the cash & goods requirements of the various branches.4.
To evaluate the progress and performances of each branch5.
To calculate commission for payment to the managers, if based on profits of branch.6.
To give concrete suggestions for the improvement in the working of the various branches.7.
To meet the requirements of specific enactments as all branches of a company must keep theaccounts for audit purpose
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What are objectives of accounting?
1.Ascertainment of operating result: Branch accounting is ascertain operating result of each Branch. 2.Ascertainment of financial position: Branch accounting is required for periodical ascertainment of financial position(i.e. position of assets and liabilities) of each branch. 3.Fulfillment of legal requirements: Branch accounting is needed to fulfill the requirement of the Companies Act in respect of Branch Audit as per Section 228. 4.Ascertainment of return on investment: Branch accounting helps in ascertain of return on investment of each Branch. 5.Causes of success or failure: Branch accounting provides information about Branch functioning in detail and thus helps Head Office to arrive for the reason of success or failure of a each Branch.
Accounting and its functional objectives?
There are many objectives to accounting. A systematic accounting system will should have the following objectives: to maintain cash account balances, to detect fraud, and maintain ledger account balances.
What are advantages and disadvantages of branch accounting?
advantages of branch accounting
What are the methods of Accounting for Branch?
branch accounting income statement
What are the primary objectives of the accounting function in an organization?
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.
What are objectives of accounting?
1.Ascertainment of operating result: Branch accounting is ascertain operating result of each Branch. 2.Ascertainment of financial position: Branch accounting is required for periodical ascertainment of financial position(i.e. position of assets and liabilities) of each branch. 3.Fulfillment of legal requirements: Branch accounting is needed to fulfill the requirement of the Companies Act in respect of Branch Audit as per Section 228. 4.Ascertainment of return on investment: Branch accounting helps in ascertain of return on investment of each Branch. 5.Causes of success or failure: Branch accounting provides information about Branch functioning in detail and thus helps Head Office to arrive for the reason of success or failure of a each Branch.
Accounting and its functional objectives?
There are many objectives to accounting. A systematic accounting system will should have the following objectives: to maintain cash account balances, to detect fraud, and maintain ledger account balances.
What are the methods of Accounting for Branch?
branch accounting income statement
What are advantages and disadvantages of branch accounting?
advantages of branch accounting
What are the primary objectives of the accounting function in an organization?
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.
What is the Cost and cost accounting also give out objectives of cost accounting?
answer
Is accounting a branch of science?
Although it uses some mathematics, accounting is a branch of economics.
What are the objectives of material control in cost accounting?
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What are types of branch accounting?
Dependent Branch Independent Branch Foreign Branch
What are the objectives of government accounting?
to fulfill the legal requirement
What are the objectives of public sector accounting?
Standards of consistency, quality, information sharing between Accountants, and transparency in reporting are the base objectives of public sectors accounting.
What is inflationary accounting?
The branch of accounting which deals with the transactions of inflation.
