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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 types of branch accounting?
Dependent Branch Independent Branch Foreign Branch
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.
Distinguish between branch accounts and departmental accounts?
LocationOne of the primary differences in branch accounting and departmental accounting stems from how the business is structured. Businesses with their own accounting departments use departmental accounting when the accounting process takes place in a central location but is compartmentalized because the business consists of various departments. Each department might have some level of autonomy and might undergo separate audits. Branch accounting is used in industries such as banking where the business consists of branches that are generally independent of one another, even though they are all owned by a parent company or organization. CostOne way branch accounting and departmental accounting differ is the amount of manpower required to perform the jobs. With departmental accounting, most of the accounting procedures can be performed in-house and might be able to use an individual accountant or a small team that oversees the accounting for all departments. B.K. Banerjee, author of "Financial Accounting: Concepts, Analyses, Methods and Uses," notes that maintaining separate books for each department can be expensive. Instead, many companies opt for one group of accountants to maintain all of the books. This cost consideration can also affect businesses using branch accounting because they might need multiple accountants to maintain books in separate branch locations. ResponsibilityThe level of responsibility and oversight is greater with branch accounting than it is with departmental accounting. Lack of centralization requires that each branch keep accurate records of its own. However, this also requires the parent company or organization to keep a watchful eye over the accountant and the branch organization. In departmental accounting, these actions occur within the central organization. Although the need to keep watch over each department remains, it can be easier to do so because it occurs within the parent company. ProfitabilityWhile branch and departmental accounting both help create a financial portrait of the company, with branch accounting, the profitability of each branch can be equally important. Companies can make adjustments as necessary for each branch of their organization. Adjustments can be made within individual departments as well, but profitability is seen within the larger picture of the parent organization's profits, rather than on an individual level.
Is accounting a branch of science?
Although it uses some mathematics, accounting is a branch of economics.
What are the Accounting entries for branch accounts?
DR investments in branch Cr cash cash sent to branch and also if the problem uses the periodic inventory system it uses the ff: HOME OFFICE BOOKS BRANCH BOOKS DR investment in branch xxx DR shipments from HO xxx CR shipments to branch xxx CRHO xxx ****** shipping of merchandise
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 Uses of Accounting Package in Tally?
uses of accounting package
What are types of branch accounting?
Dependent Branch Independent Branch Foreign Branch
What is inflationary accounting?
The branch of accounting which deals with the transactions of inflation.
What are the methods of branch account?
branch accounting income statement
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.
Distinguish between branch accounts and departmental accounts?
LocationOne of the primary differences in branch accounting and departmental accounting stems from how the business is structured. Businesses with their own accounting departments use departmental accounting when the accounting process takes place in a central location but is compartmentalized because the business consists of various departments. Each department might have some level of autonomy and might undergo separate audits. Branch accounting is used in industries such as banking where the business consists of branches that are generally independent of one another, even though they are all owned by a parent company or organization. CostOne way branch accounting and departmental accounting differ is the amount of manpower required to perform the jobs. With departmental accounting, most of the accounting procedures can be performed in-house and might be able to use an individual accountant or a small team that oversees the accounting for all departments. B.K. Banerjee, author of "Financial Accounting: Concepts, Analyses, Methods and Uses," notes that maintaining separate books for each department can be expensive. Instead, many companies opt for one group of accountants to maintain all of the books. This cost consideration can also affect businesses using branch accounting because they might need multiple accountants to maintain books in separate branch locations. ResponsibilityThe level of responsibility and oversight is greater with branch accounting than it is with departmental accounting. Lack of centralization requires that each branch keep accurate records of its own. However, this also requires the parent company or organization to keep a watchful eye over the accountant and the branch organization. In departmental accounting, these actions occur within the central organization. Although the need to keep watch over each department remains, it can be easier to do so because it occurs within the parent company. ProfitabilityWhile branch and departmental accounting both help create a financial portrait of the company, with branch accounting, the profitability of each branch can be equally important. Companies can make adjustments as necessary for each branch of their organization. Adjustments can be made within individual departments as well, but profitability is seen within the larger picture of the parent organization's profits, rather than on an individual level.
What is positive accounting theories?
Positive Accounting Theory is a branch of academic accounting research. It tries to predict and explain actual accounting practices. It is used to understand how to use accounting practices better.
What branch is the general accounting office in?
legistative
