Branch Accounting is the system of the bookkeeping under which the company maintains separate accounts for each of the operating locations or branches of the company. It is followed with the motive of increasing the transparency and knowing the cash flow position and the financial picture of each such location of working of the company. Technically, the branch account is a temporary or nominal ledger account, lasting for a designated accounting period. Branch accounts can also refer to records individually produced to show the performance of different locations, with the accounting records actually maintained at the corporate headquarters. The basic purpose of branch accounting is to ascertain the branch income, branch expenses, branch assets and branch liabilities. The branch accounts help the H.O. to decide whether a particular branch is earning profits and should be continued. The presentation gives better understanding on the topic.

Saranya R Kurup

168 resources

0

0

2

Like