BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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all instruction from Head Office
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accounting records maintained by Head Office
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activities controlled by Head Office
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branch may make local purchase
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Detailed explanation-1: -which one of the following is not true about a dependent branch? Explanation: the dependent branches do not keep a complete set of books.
Detailed explanation-2: -Sales Returns will not appear directly in the Branch Account under the Debtors System.
Detailed explanation-3: -Local Branch-A local branch is a company’s office in any other place in the same country other than its head office. Dependent Branch-A branch that is mostly reliant on Head Office for “Goods and Cash.” Head Office will also keep track of the books of accounts for such a branch.
Detailed explanation-4: -What are the rules of making record in branch Account? Branch Account is debited with the opening balance of cash and further sum sent by Head Office to Branch. At the closing time, Branch Account is credited with the closing balance of Petty Cash. Thus, the petty expenses are automatically charged to Branch Account.