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DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR : Departmental accounting, meaning, features, objectives, advantages, allocation of expenses. QUESTION: What do you mean by departmental accounts? Explain its objectives. Briefly discuss the methods of departmental accounts. DEPARTMENTAL ACCOUNTING: Departmental Accounting refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department…
INCORPORATION OF BRANCH TRIAL BALANCE Branch and Head office belongs to the same owner. It is must to prepare the consolidated accounts of both. To prepare the consolidated accounts of the head office, the branch trial balance is incorporated in the books of the Head Office. The Incorporation of Trial Balance means the recording or…
INTER-DEPARTMENTAL TRANSFERS The goods transferred by one department to another department is called inter-departmental transfers. The rule applies to inter-departmental transfers is: Debit the Receiver Credit the Giver The department sending the goods is debited and the account of receiving department is credited. Inter-departmental transfers is made on the following basis: INTER-DEPARTMENTAL TRANSFER AT COST…
Allocation of expenses in departmental accounting Departmental Accounting refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department are recorded and reported separately. The departments are then consolidated into the accounts of the head office to prepare the financial statements of the company. The Allocation of expenses…
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Methods of departmental Accounting Departmental Accounting refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department are recorded and reported separately. The departments are then consolidated into the accounts of the head office to prepare the financial statements of the company. A department is defined as a…
