In this video i have explained the branch accounts concept, types of branches and format of debtor system. This is the professional exam level question on the topic of branch accounting. Branch accounts format for books of head office branch account for the year ended dr. You must have adobe reader 7 or above to view the file contents. Such a branch can either be a home branch or a foreign branch. This method helps the head office to make efficient control on branches as there are a few more accounts are to be opened viz.
The bank account management system is an application for maintaining a persons account in a bank. Accounting for branches chapter outline and learning outcomes introduction objectives of accounting centrally controlled branches memorandum method branch inventory adjustment method autonomous branches 5. In that account, it records such items as inventory, accounts receivable, wages, equipment, expenses such as rent. Branch accounts notes debits and credits income statement. In this project i tried to show the working of a banking account system and cover the basic. If it is desired to prepare a trading and profit and loss account for ascertaining profit or loss, the accompanying branch account will only be a personal account showing the total of closing balances as the difference between the two sides. This method is applicable particularly where there are large numbers of transaction and they are numerous. As can be seen from these two introduction slides, setting up a branch either green or brown field requires a structured, multidisciplinary approach to get it right. Top 16 problems on branch accounts your article library. Particulars amount particulars amount to opening stock at branch xx by goods returned at branch xx to opening debtors at branch by bank account remittances to petty cash at branch xx cash sales xx xx. Guide to what is branch accounting and its meaning. Example the head office buys stock and then sells it to the branch at a.
In other words head office maintains and opens a branch account in its book in order to find out the result of the operation. After watching this video you would get in depth idea of branch accounts. Let us learn about stock and debtors system of accounting for branch. The branch account, as prepared above, is a nominal account showing profit or loss made by the branch. Preparing branch accounts 8 aspects your article library.