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/Account ing-for-Entrepreneurs

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http://www.scribd.com/doc/30611042/Sale-ofGoods-Act-and-Related-Provisions-forEntrepreneurs Download link http://www.scribd.com/doc/19492869/Account ing http://www.scribd.com/doc/22783825/Account ing-Process http://www.scribd.com/doc/11627269/FinalAccounts http://www.scribd.com/doc/22354533/Business -Model-of-Afterschoool http://www.scribd.com/doc/23393807/17-July5 DECEMBER 09 www.afterschool.tk 4 Advanced-Accounting study material of PGPSE / CSE http://www.scribd.com/doc/23393464/10-July-

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 Opening stock Goods sent to branch account Rent Wages (all expenses by branch) Stock reserve (closing stock)

Credit side Stock reserve (for opening stock) Cash sales Cash received from debtors Goods return Closing stock of goods and debtors

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Format of memorandum debtors account

Debit side Sale (credit) Credit side 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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FORMAT BRANCH DEBTORS ACCOUNT

CEDIT SIDE DEBIT SIDE Cash received Stock account (balancing figure Branch adjustment denoting total credit a/c ( Bad debts etc.) sales )

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Format branch stock account

Debit side Opening balance Goods sent Credit side Cash account 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 Stock reserve Branch stock a/c Gross profit (balancing figure Credit side Goods sent to branch a/c

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Format branch adjustment a/c II part

Debit side Branch debtors Branch stock Branch expenses New profit Credit side Gross profit

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