{"id":2551,"date":"2019-09-30T09:09:41","date_gmt":"2019-09-30T09:09:41","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2551"},"modified":"2019-09-30T09:09:41","modified_gmt":"2019-09-30T09:09:41","slug":"methods-of-branch-accounting","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/methods-of-branch-accounting\/","title":{"rendered":"METHODS OF BRANCH ACCOUNTING"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#METHODS_OF_BRANCH_ACCOUNTING\" title=\"METHODS OF BRANCH ACCOUNTING\">METHODS OF BRANCH ACCOUNTING<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#OBJECTIVES_OF_BRANCH_ACCOUNTING\" title=\"OBJECTIVES OF BRANCH ACCOUNTING\">OBJECTIVES OF BRANCH ACCOUNTING<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#METHODS_OF_BRANCH_ACCOUNTING-2\" title=\"METHODS OF BRANCH ACCOUNTING\">METHODS OF BRANCH ACCOUNTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#DEBTORS_SYSTEM\" title=\"DEBTORS SYSTEM\">DEBTORS SYSTEM<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#FORMAT_OF_BRANCH_ACCOUNT\" title=\"FORMAT OF BRANCH ACCOUNT\">FORMAT OF BRANCH ACCOUNT<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#STOCK_AND_DEBTORS_SYSTEM\" title=\"STOCK AND DEBTORS SYSTEM\">STOCK AND DEBTORS SYSTEM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#FINAL_ACCOUNTS_SYSTEM\" title=\"FINAL ACCOUNTS SYSTEM\">FINAL ACCOUNTS SYSTEM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/#WHOLESALE_PRICE_SYSTEM\" title=\"WHOLESALE PRICE SYSTEM\">WHOLESALE PRICE SYSTEM<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"METHODS_OF_BRANCH_ACCOUNTING\"><\/span><strong>METHODS OF BRANCH ACCOUNTING<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"has-medium-font-size\"><a href=\"https:\/\/commerceiets.com\/different-types-of-branches\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Branch (opens in a new tab)\">Branch<\/a> Accounting means recording of business transactions of a branch for the purpose of calculating its profit or loss for an accounting period. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"OBJECTIVES_OF_BRANCH_ACCOUNTING\"><\/span>OBJECTIVES OF BRANCH ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\"><strong>TO ASCERTAIN PROFIT OR LOSS AT BRANCH: <\/strong>Every business house wants to measure the performance of its branches separately. Hence, separate records for each branch are necessary. Efficiency or otherwise of a branch can also be measured with the help of its accounting records.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>TO ASCERTAIN TRUE FINANCIAL POSITION OF BUSINESS: <\/strong>Branch Accounting helps the business to ascertain its true financial position. Accounting records of the assets and liabilities will helps in preparing in the balance sheet which is a mirror of the financial position.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>COMPLIANCE WITH STATUTORY REQUIREMENT:<\/strong> Branch accounts are necessary to meet large requirements with the company law, Income tax laws and other such acts.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>TO INCREASE EFFICIENCY OF THE BRANCH:<\/strong> Branch accounts are the indicators of the efficiency of the branch. They will indicate the loopholes or drawbacks which can be rectified in time. In this way, branch accounts will be helpful in increasing the efficiency of the branch.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>TO EXERCISE CONTROL OVER BRANCH: <\/strong>Head Office exercises control only through information supplied by branches to head office. The main source of information is the accounts maintained from branch transactions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"METHODS_OF_BRANCH_ACCOUNTING-2\"><\/span>METHODS OF BRANCH ACCOUNTING<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Dependent branch is a branch which does not maintain its own set of books. All records have to be maintained by the head office. The Head Office will record transactions of Branch by any of the following methods:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-5.jpg\" alt=\"methods of branch accounting\" class=\"wp-image-2554\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-5.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-5-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/09\/Slide4-5-768x576.jpg 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DEBTORS_SYSTEM\"><\/span>DEBTORS SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Under this system, head office maintains separate branch\naccount for each branch. It will be prepared to find out profit or loss of the\nbranch. The branch account is nominal account. The journal entries passed under\nthis method are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>   WHEN GOODS ARE SENT TO THE BRANCH   <br \/><\/strong>Branch A\/c&nbsp;&nbsp;&nbsp;&nbsp; Dr. <br \/>  &nbsp;&nbsp;&nbsp;&nbsp; To Goods sent to branch   A\/c   <\/td><\/tr><tr><td><strong>   EXPENSES OF BRANCH PAID BY THE HEAD OFFICE   <br \/><\/strong>Branch A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>    To Cash\/ bank A\/c   <\/td><\/tr><tr><td><strong>   CASH SENT TO BRANCH FOR PURCHASE OF FIXED ASSETS<br \/><\/strong>   Branch A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Bank A\/c   <\/td><\/tr><tr><td><strong>   CASH BEING SENT FOR PETTY EXPENSES   <br \/><\/strong>Branch A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Cash\/ bank A\/c&nbsp;    <\/td><\/tr><tr><td><strong>   FOR GOODS RETURNED BY BRANCH TO HEAD OFFICE   <br \/><\/strong>Goods sent to branch A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Branch A\/c   <\/td><\/tr><tr><td><strong>   FOR CASH SALE BY BRANCH   <br \/><\/strong>Cash\/ Bank A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To Branch A\/c   <\/td><\/tr><tr><td><strong>   FOR CLOSING BALANCE OF FIXED ASSETS   <br \/><\/strong>Branch Fixed Asset A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Branch A\/c   <\/td><\/tr><tr><td><strong>   FOR PROFIT EARNED BY BRANCH   <br \/><\/strong>Branch A\/c&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp; To general Profit and Loss   A\/c   <\/td><\/tr><tr><td><strong>   FOR LOSS EARNED BY BRANCH   <br \/><\/strong>General profit and loss A\/c&nbsp;&nbsp;   Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To Branch A\/c   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FORMAT_OF_BRANCH_ACCOUNT\"><\/span>FORMAT OF BRANCH ACCOUNT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>   PARTICULARS   <\/strong><\/td><td><strong>   AMOUNT   <\/strong><\/td><td><strong>   PARTICULARS   <\/strong><\/td><td><strong>   AMOUNT   <\/strong><\/td><\/tr><tr><td>\n  To Branch stock A\/c\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  By cash\/ bank account\n  (for cash sales)\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  To branch debtors A\/c\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  By cash\/ bank a\/c\n  (for cash from debtors)\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  To branch petty cash account (opening balance)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  By goods sent to branch account\n  (returned to head office)\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  To goods sent to branch account (at cost price)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  By branch stock account\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  To expenses outstanding account\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  By branch debtors account\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  To general profit and loss account\n  (net profit)\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  By branch petty cash account\n  (closing balance)\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  By prepaid expenses account\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"STOCK_AND_DEBTORS_SYSTEM\"><\/span>STOCK AND DEBTORS SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">This method is also adopted to find out the profit or loss\nmade by the branch. This method is generally adopted when the goods are\ndispatched to the branch at the selling price which the branch is not\nauthorized to vary. Under this method, the following accounts are opened:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>BRANCH ASSETS ACCOUNT:<\/strong> Individual assets accounts are opened for each kind of asset. Example: branch cash account, branch debtors\u2019 account, branch furniture account etc.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>BRANCH EXPENSES ACCOUNT: <\/strong>This account is debited with all the expenses of the branch like rent, salaries, advertisement etc. this account is closed by transferring to the branch adjustment account.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>BRANCH STOCK ACCOUNT:<\/strong> This account is prepared to find out the surplus or shortage of stock at the branch. This account is featured as:<\/p>\n\n\n\n<ul><li>This account is prepared at invoice price.<\/li><li>Opening stock is posted at the debit side of\nthis account.<\/li><li>Goods sent to branch is also recorded at the\ndebit side of this account.<\/li><li>Goods returned to head office and closing stock\nis shown at the credit side of this account.<\/li><li>The excess of debit over credit is shortage.<\/li><li>The excess of credit over debit is surplus.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>BRANCH ADJUSTMENT ACCOUNT:<\/strong> This account has two parts. The first part is prepared like Trading Account. It is debited with <\/p>\n\n\n\n<ul><li>stock reserve account (profit element in &nbsp;closing stock)<\/li><li>profit element in shortage. <\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">This account is credited with <\/p>\n\n\n\n<ul><li>stock reserve account (profit element in&nbsp; opening stock)<\/li><li>profit element in surplus.<\/li><li>Profit element in goods sent to branch.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">The excess of debit over credit is gross loss and excess of\ncredit over debit is gross profit.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">In the second part, the branch expenses account and the cost\nof shortage or surplus is shown- the shortage on the debit side and the surplus\non the credit side. The balance of this account indicates either profit or\nloss.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>JOURNAL ENTRIES<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>   WHEN GOODS SENT TO BRANCH   <br \/><\/strong>Branch Stock A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp; To Goods sent to branch A\/c   <\/td><\/tr><tr><td><strong>   WHEN SALES ARE MADE AT THE BRANCH   <br \/>On cash basis   <br \/><\/strong>Cash A\/c&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Branch stock A\/c   <br \/><strong>On credit basis<br \/><\/strong>Branch Debtors A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Branch Stock A\/c   <\/td><\/tr><tr><td><strong>   WHEN CASH IS RECEIVED FROM DEBTORS   <br \/><\/strong>Cash A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Branch debtors A\/c   <\/td><\/tr><tr><td><strong>   FOR BRANCH EXPENSES PAID IN CASH   <br \/><\/strong>Branch Expenses A\/c&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Cash A\/c   <\/td><\/tr><tr><td><strong>   FOR TRANSFER OF EXPENSES TO BRANCH ADJUSTMENT ACCOUNT   <br \/><\/strong>Branch Adjustment A\/c&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Branch Stock A\/c   <\/td><\/tr><tr><td><strong>   FOR ADJUSTMENT IN INFLATED PRICE OF OPENING STOCK   <br \/><\/strong>Stock Reserve A\/c&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp; To Branch Adjustment A\/c   <\/td><\/tr><tr><td><strong>   FOR ADJUSTMENT IN INFLATED PRICE OF CLOSING STOCK   <br \/><\/strong>Branch Adjustment A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To Stock Reserve A\/c   <\/td><\/tr><tr><td><strong>   FOR TRANSFER OF PROFIT TO GENERAL PROFIT AND LOSS ACCOUNT   <\/strong><\/td><\/tr><tr><td>   Branch Adjustment A\/c&nbsp;&nbsp;&nbsp; Dr.<br \/>    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To General profit and   loss account    <\/td><\/tr><tr><td><strong>   FOR TRANSFER OF LOSS TO GENERAL PROFIT AND LOSS ACCOUNT   <\/strong><\/td><\/tr><tr><td>   General Profit and Loss A\/c&nbsp;&nbsp;&nbsp;   Dr.<br \/>   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To Branch Adjustment A\/c   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FINAL_ACCOUNTS_SYSTEM\"><\/span>FINAL ACCOUNTS SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Under this system, Trading and profit and loss account is\nprepared to calculate the gross profit or gross loss and net profit or net\nloss. The opening stock and goods sent to branch is debited in the trading\naccount. The closing stock, sales, goods returned by branch is credited to the\ntrading account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"WHOLESALE_PRICE_SYSTEM\"><\/span>WHOLESALE PRICE SYSTEM<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Under this system, the goods are invoiced at the wholesale price to a retail branch. Opening stock and closing stock of branch will be shown at the wholesale price and unrealized profits in closing stock will be debited as stock reserve to profit and loss account of head office. Similarly, the stock reserve of opening stock will be credited to profit and loss account of head office.&nbsp; <\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting\/\"><strong>Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/non-profit-organisation\/\"><strong>Non profit organisation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation\/\"><strong>Depreciation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liquidity-ratios-types\/\"><strong>Liquidity ratios<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/nature-of-accounting\/\"><strong>Nature of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/receipt-and-payment-account-pdf\/\"><strong>Receipts and Payments Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation-accounting\/\"><strong>Depreciation Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/acid-test-ratio-formula\/\"><strong>Acid Test Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/benefits-of-accounting\/\"><strong>Benefits of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/hire-purchase-accounting-notes-pdf\/\"><strong>Hire Purchase Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cash-ratio\/\"><strong>Cash Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-cost-accounting-and-financial-accounting\/\"><strong>Difference between cost accounting and financial accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\"><strong>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-hire-purchase-and-instalment\/\"><strong>Difference between hire purchase and instalment system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/financial-ratio-analysis\/\"><strong>Financial ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-transaction-and-event\/\"><strong>Difference between transaction and event<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/transactions\/\"><strong>Transactions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/users-of-accounting\/\"><strong>Users of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/current-ratio-formula\/\"><strong>Ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limitations-of-accounting-2\/\"><strong>Limitation of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-expenditure\/\"><strong>Capital Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/instalment-system\/\"><strong>Instalment System<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-consignment-and-sale\/\"><strong>Difference between consignment and sale<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/book-keeping\/\"><strong>Book Keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-expenditure\/\"><strong>Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Reserves Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-normal-and-abnormal-loss\/\"><strong>Abnormal loss vs normal loss in consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accountancy\/\"><strong>Accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-expenditure-and-revenue-expenditure\/\"><strong>Difference between capital and revenue expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Provisions&nbsp;<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/treatment-of-loss-on-consignment\/\"><strong>Treatment of loss on consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting as science or an art<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-equation\/\"><strong>Accounting Equation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/single-entry-system-in-accounting\/\"><strong>Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-consignment\/\"><strong>Accounting treatment of consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book Keeping vs accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/deferred-revenue-expenditure\/\"><strong>Deferred Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/statement-of-affairs-and-balance-sheet-difference\/\"><strong>Difference between statement of affairs and balance sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-consignment\/\"><strong>Joint venture vs consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book keeping vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-receipt\/\"><strong>Capital receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/ifrs\/\"><strong>IFRS<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/departmental-accounting\/\"><strong>Departmental Accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-receipt\/\"><strong>Revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/balance-sheet\/\"><strong>Balance Sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-departmental-accounting\/\"><strong>Methods of departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/basis-of-accounting\/\"><strong>Basis of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-and-revenue-receipt\/\"><strong>Difference between capital and revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/profit-and-loss-account\/\"><strong>Profit and loss Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-of-expenses-in-departmental-accounting\/\"><strong>Allocation of expenses in departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/branches-of-accounting\/\"><strong>Branches of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Difference between accounting concepts and conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/trading-account\/\"><strong>Trading Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-departmental-transfers\/\"><strong>Inter-departmental transfers<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cash-and-mercantile-system-of-accounting\/\"><strong>Cash and mercantile system of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-standards\/\"><strong>Accounting Standards<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/voyage-account\/\"><strong>Voyage Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/different-types-of-branches\/\"><strong>Different types of branches<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-principles\/\"><strong>Accounting Principles<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-accounting\/\"><strong>Objectives of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-for-incomplete-voyage\/\"><strong>Accounting for Incomplete Voyage<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-departmental-and-branch-accounting\/\"><strong>Departmental vs Branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/golden-rules-of-accounting\/\"><strong>Golden ru\nles of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-accounting\/\"><strong>Process of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-venture\/\"><strong>Joint venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/\"><strong>Methods of branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/double-entry-system-of-accounting\/\"><strong>Double entry system of book keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-partnership\/\"><strong>Joint Venture Vs Partnership<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incorporation-of-branch-trial-balance\/\"><strong>Incorporation of branch trial balance<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-double-single-entry-system\/\"><strong>Double entry vs Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-recording-transactions-in-joint-venture\/\"><strong>Methods of recording transactions in Joint Venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/garner-vs-murray-rule\/\"><strong>Garner VS Murray Rule<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/history-of-accounting-pdf\/\"><strong>History of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-provisions-and-reserves\/\"><strong>Difference between provisions and reserves<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consignment\/\"><strong>Consignment<\/strong><\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>METHODS OF BRANCH ACCOUNTING Branch Accounting means recording of business transactions of a branch for the purpose of calculating its profit or loss for an accounting period. OBJECTIVES OF BRANCH ACCOUNTING TO ASCERTAIN PROFIT OR LOSS AT BRANCH: Every business house wants to measure the performance of its branches separately. Hence, separate records for each&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;METHODS OF BRANCH ACCOUNTING&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2553,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[172],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2551"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2551"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2553"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}