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Branch Accounting - Full Tutorial





When you start your business large scale then you have to make the accounts of branch also. There are following way of maintaining branch accounting.

When our branches are not making full accounts of our branch and with rough information we make all accounts of branch in the head office.

♫ Steps for maintaining branch accounting

a) In that type of branches, it is necessary to make bank account in the name of head office so that amount got from cash sale can be deposited in head office bank account.
b) All miscellaneous expenses are given by head office accountant to branch accountant on impress or advance system of cash book.
c) All salaries, rent, advertising and other expenses must be paid by head office.
d) Head office can send goods to branch on cost price or invoice price.
e) It is necessary for branch to make the list of debtors if branch has all to sell the goods on credit .It is duty of branch accountant to send branch debtors list to head office weekly or monthly.
f) These branches can make memorandums in different registers. On these memorandums and registers head office can make branch account

g) For making branch account in head office, we open each branch account in head office with given branch name.

COMMENTS

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  1. why credit sales is not taken on credit side of branch account in head office's book?

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Accounting Education: Branch Accounting - Full Tutorial
Branch Accounting - Full Tutorial
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Accounting Education
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