PPT: Branch Accounts | Advanced Accounting for CA Intermediate PDF Download

 Page 1


BRANCH ACCOUNTS
Page 2


BRANCH ACCOUNTS
INTRODUCTION
In order to increase the sales, business houses are required to market their
products over a larger territory and may generally split their business into certain
divisions or parts, if the various certain divisions or parts, if the various parts or
divisions are located in different parts of the same city as Chandni chowk, Karol
bagh, Connaught place, Nehru place (in delhi) or in different cities of the same
country as Calcutta, Chennai, Mumbai, Kanpur and Delhi (in india) or in different
countries (in the world) as Canada, USA, England, Japan, U.S.S.R and Germany,
these are known as branches, head office contracts the activities of various branches.
Page 3


BRANCH ACCOUNTS
INTRODUCTION
In order to increase the sales, business houses are required to market their
products over a larger territory and may generally split their business into certain
divisions or parts, if the various certain divisions or parts, if the various parts or
divisions are located in different parts of the same city as Chandni chowk, Karol
bagh, Connaught place, Nehru place (in delhi) or in different cities of the same
country as Calcutta, Chennai, Mumbai, Kanpur and Delhi (in india) or in different
countries (in the world) as Canada, USA, England, Japan, U.S.S.R and Germany,
these are known as branches, head office contracts the activities of various branches.
MEANING OF BRANCH ACCOUNTS
The dictionary meaning of the word ‘Bra nch’ is any subordinate division of a
business, subsidiary shop, office etc. According to the provisions contained in
section 29 of the companies’ act 1956, it would appear that a branch is any
establishment carrying on either the same or substantially the same activity as that
carried on by head office of the company.
Many business concerns now-a-days carry on trading in different
establishments scattered far and near. In other words, a business may be, an divided
into so many divisions. If the various divisions are situated in different places of the
same town or in different towns, they are known as branches.
Page 4


BRANCH ACCOUNTS
INTRODUCTION
In order to increase the sales, business houses are required to market their
products over a larger territory and may generally split their business into certain
divisions or parts, if the various certain divisions or parts, if the various parts or
divisions are located in different parts of the same city as Chandni chowk, Karol
bagh, Connaught place, Nehru place (in delhi) or in different cities of the same
country as Calcutta, Chennai, Mumbai, Kanpur and Delhi (in india) or in different
countries (in the world) as Canada, USA, England, Japan, U.S.S.R and Germany,
these are known as branches, head office contracts the activities of various branches.
MEANING OF BRANCH ACCOUNTS
The dictionary meaning of the word ‘Bra nch’ is any subordinate division of a
business, subsidiary shop, office etc. According to the provisions contained in
section 29 of the companies’ act 1956, it would appear that a branch is any
establishment carrying on either the same or substantially the same activity as that
carried on by head office of the company.
Many business concerns now-a-days carry on trading in different
establishments scattered far and near. In other words, a business may be, an divided
into so many divisions. If the various divisions are situated in different places of the
same town or in different towns, they are known as branches.
DEFINITION OF BRANCH 
According to sec 29 of the Indian Companies Act 1956, branch it would
appear that a branch is “any establishment carrying on either the same or
substantially the same activity as that carried on by the head office of the com pany”.
Page 5


BRANCH ACCOUNTS
INTRODUCTION
In order to increase the sales, business houses are required to market their
products over a larger territory and may generally split their business into certain
divisions or parts, if the various certain divisions or parts, if the various parts or
divisions are located in different parts of the same city as Chandni chowk, Karol
bagh, Connaught place, Nehru place (in delhi) or in different cities of the same
country as Calcutta, Chennai, Mumbai, Kanpur and Delhi (in india) or in different
countries (in the world) as Canada, USA, England, Japan, U.S.S.R and Germany,
these are known as branches, head office contracts the activities of various branches.
MEANING OF BRANCH ACCOUNTS
The dictionary meaning of the word ‘Bra nch’ is any subordinate division of a
business, subsidiary shop, office etc. According to the provisions contained in
section 29 of the companies’ act 1956, it would appear that a branch is any
establishment carrying on either the same or substantially the same activity as that
carried on by head office of the company.
Many business concerns now-a-days carry on trading in different
establishments scattered far and near. In other words, a business may be, an divided
into so many divisions. If the various divisions are situated in different places of the
same town or in different towns, they are known as branches.
DEFINITION OF BRANCH 
According to sec 29 of the Indian Companies Act 1956, branch it would
appear that a branch is “any establishment carrying on either the same or
substantially the same activity as that carried on by the head office of the com pany”.
OBJECTIVES OF BRANCH ACCOUNTS
All the branch transactions are recorded mainly to know the profit
earned by individual branch. The following are the important objects of
maintaining branch accounts.
1. Profit of individual branch: the purpose of preparing branch accounts is to
know the profit or loss earned by individual branches. It will help to identify
those branches, which will gi ,C ve minimum profit or no profit.
2. Proper control: Proper control can be exercised by head office upon those
branches where a number of problems arise. Through its accounting records it
identifies the areas of weakness and helps them to improve efficiently.