- Why branch accounts are kept?
- What are the different types of branch?
- What is wholesale branch?
- What is debtors method?
- How are inter branch transactions recorded in branch account?
- How do I account for branches?
- What does CCE mean on bank statement?
- What’s an inter branch payment?
- What is CCE on my bank statement?
- What is a teller transaction?
- What is meant by branch?
- Which sales are recorded in branch account under debtor system?
- What does inter branch mean?
- What are types of branch accounts?
- What is stock and debtor system?
Why branch accounts are kept?
The branch accounts help the H.O.
to decide whether a particular branch is earning profits and should be continued.
An independent branch keeps all accounts on its own and can independently ascertain its income, expenses, assets and liabilities.
In case of a dependent branch, its accounts are kept by the H.O..
What are the different types of branch?
Branches can be classified into two types.Dependent Branches. The term dependent branch means a branch that does not maintain its own set of books. … Independent Branch. An independent branch means a branch, which maintains its own set of books.
What is wholesale branch?
It deals in both retail and wholesale transactions. The profit rates earned by Branches differ between the retail sale and wholesale. … The Head Office sends the goods to Branch at wholesale price and in case all the goods have been sold, there is no problem.
What is debtors method?
Debtor System of accounting is suitable for the small-size branches. Under this, a Branch Account is opened for each branch in the head office ledger. All transactions are recorded in this account. The Branch Account is prepared in such a way that it discloses the profit or loss of the branch.
How are inter branch transactions recorded in branch account?
A transaction that takes place in a branch of your bank may involve accounts that are maintained in another branch. … The accounting entries for such inter-branch transactions can be routed in one of the following ways: Directly – where each branch will have a direct accounting relationship with all other branches.
How do I account for branches?
BRANCH ASSETS ACCOUNT: Individual assets accounts are opened for each kind of asset. Example: branch cash account, branch debtors’ account, branch furniture account etc. BRANCH EXPENSES ACCOUNT: This account is debited with all the expenses of the branch like rent, salaries, advertisement etc.
What does CCE mean on bank statement?
Cash and cash equivalentsCash and cash equivalents (CCE) are company assets in cash form or in a form that can be easily converted to cash.
What’s an inter branch payment?
Inter-branch payment. Transfer of money between accounts at different branches. INT. Interest. A transaction on your account associated with interest earned or.
What is CCE on my bank statement?
What Are Cash and Cash Equivalents (CCE)? Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately.
What is a teller transaction?
A teller is someone who works for a bank and is responsible for accurately processing routine bank transactions at a bank. These transactions include cashing cheques, depositing money, and collecting loan payments.
What is meant by branch?
Branch, bough, limb refer to divisions of a tree. Branch is general, meaning either a large or a small division. Bough refers only to the larger branches: a bough loaded with apples. A limb is a large primary division of a tree trunk or of a bough: to climb out on a limb.
Which sales are recorded in branch account under debtor system?
Under Debtors System Branch Account is debited with losses like bad debts, discounts allowed and depreciation. 9. When the Branch Manager is allowed petty cash on Imprest System, the amount remitted by Head Office to reimburse the actual expenses will be debited to the Branch Account.
What does inter branch mean?
: occurring between or involving two or more branches or divisions …
What are types of branch accounts?
Though there are eight branches of accounting in total, there are three main types of accounting, according to McAdam & Co. These types are tax accounting, financial accounting and management accounting. Management accounting is useful to all types of businesses and tax accounting is required by the IRS.
What is stock and debtor system?
Stock and Debtors system is generally used when the goods are sent to the branch at. pro-forma invoice price and the size of the branch is large. Under this system, the. branch maintains a few central accounts to exercise greater control over the branch. stock and other related expenses.