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Accounting Responsibilities Of Branches


  1. To record all transactions relating to branch like purchases , sale , expenses , receipts , payments etc.
  2. To differentiate branch to head office or head office to branch transactions and all transactions with third party .
  3. Either make accounts of branch independently from head office or send periodic reports to head office and after this it is the responsibilities of accountant of head office to maintain branch accounts .
  4. If branch works as separate entity from head office and maintain his own accounts , then it is the responsibility of branch to make final account also and send it to head office .
  5. If any branch is as distribution of sale then , if any product of branch is used in head office , then proper record will be kept in branch and its profit margin must be removed from profit and loss account . It is also true all transaction between head office and branch are not business transaction , so be careful and show profit by selling to external parties and also expenses which is paid to external parties .

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Accounting Education: Accounting Responsibilities Of Branches
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