BRANCH ACCOUNTS

by :
DR. T.K. JAIN
AFTERSCHO☺OL
centre for social entrepreneurship
sivakamu veterinary hospital road
bikaner 334001 rajasthan, india
FOR – PGPSE / CSE PARTICIPANTS
mobile : 91+9414430763

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 My words....

here i present basic aspects ofaccounting for hire purchase

transactions
i wish that more people should become entrepreneurs. an
ordinary indian entrepreneur wishes to remain an honest
entrepreneur and contribute to the development of nation,let us
support entrepreneurs
JOIN AFTERSCHOOOL MOVEMENT
..

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 Download link

http://www.scribd.com/doc/21985249/Accounting-f

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 Download link
http://www.scribd.com/doc/30611042/Sale-of-Good
http://www.scribd.com/doc/19492869/Accounting
http://www.scribd.com/doc/22783825/Accounting-P
http://www.scribd.com/doc/11627269/Final-Accoun
http://www.scribd.com/doc/22354533/Business-Mo
http://www.scribd.com/doc/23393807/17-July-Adva
http://www.scribd.com/doc/23393464/10-July-accou

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study material of PGPSE / CSE
 What are types of branches ?

Inland branches
foreigh branches
dependent branches
autonomous branches

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 Dependent branches – accounts

They keep following accounts :

1. petty cash book
2. stock register
3. customer's accounts

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 Methods of accounting

1 stock and debtors system

2. debtors system
3. final account system
4. wholesale branch system

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 Debtors accounting system

Here the head office maintains account of each

branch to know about profit and loss of each
branch.
When goods are despatched, the entry is :
branch a/c debit
to goods sent to branch XYZ account
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Accounts maintained by branches

Branches maintain memorandum debtors

accounts (if they are allowed to sell on credit)
thus they maintain only memorandum debtors
account

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 Despatch of goods to branches

Goods are despatched at any of these :

1. cost
2. invoice price
3. cost + fixed % of loading

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 Format of branch account
• Debit side • Credit side
• Opening stock • Stock reserve (for opening
• Goods sent to branch account stock)
• Rent • Cash sales
• Wages • Cash received from debtors
• (all expenses by branch) • Goods return
• Stock reserve (closing stock) • Closing stock of goods and
debtors

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study material of PGPSE / CSE
 Format of memorandum debtors
account
• Debit side • Credit side
• Sale (credit) • Cash received
• Discount
• Goods returned
• Bad debts
• Allowances
• Balance
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 What is stock reserve ?

If cost is 100, but the HO has sent goods to

branch at 120 then there is profit of 20 added
in the cost. This 20 has to be adjusted. This is
called stock reserve.

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 What is stock -debtors system

In the debtors system, you cant have all the details – as some
details are in memorandum debtors account. It is difficult to
identify bad debts etc in head office (as these entries are in
memorandum debtors account.
In stock debtors account, we prepare following detailed
accounts : 1. branch stock account 2. branch debtors account
3. branch adjustment account 4. branch expenses account
5.goods sent to branch acccount

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study material of PGPSE / CSE
FORMAT BRANCH DEBTORS
ACCOUNT
• DEBIT SIDE • CEDIT SIDE
• Stock account • Cash received
(balancing figure • Branch adjustment
denoting total credit a/c ( Bad debts
sales ) etc.)

5 DECEMBER 09 www.afterschool.tk 15
study material of PGPSE / CSE
 Format branch stock account
• Debit side • Credit side
• Opening balance • Cash account
• Goods sent • Debtors a/c (credit
sales)
• Goods returns by
branch
• Balance c/d

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 Format branch adjustment a/c – I
part
• Debit side • Credit side
• Stock reserve • Goods sent to
• Branch stock a/c branch a/c
• Gross profit
(balancing figure

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Format branch adjustment a/c – II
part
• Debit side • Credit side
• Branch debtors • Gross profit
• Branch stock
• Branch expenses
• New profit

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 THANKS....
GIVE YOUR SUGGESTIONS AND JOIN
AFTERSCHOOOL NETWORK / START
AFTERSCHOOOL SOCIAL
ENTREPRENEURSHIP NETWORK IN
YOUR CITY / COLLEGE
AFTERSCHOOOL@IN.COM
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COMPREHENSIVE PROGRAMME IN
SOCIAL ENTREPRENEURSHIP
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