Meaning of Branch Account:

A branch account is a type of account that is maintained by a company to keep track of the transactions and activities of its branch offices. The purpose of the branch account is to provide a consolidated view of the financial performance of the company's branch offices.

Types of Branches:

There are two types of branches, namely:

1. Dependent Branch:

A dependent branch is a branch that relies on the head office for its operations. Such branches do not have their own legal identity, and all transactions are recorded in the books of the head office.

2. Independent Branch:

An independent branch is a branch that has its own legal identity and operates separately from the head office. Such branches maintain their own books of accounts and prepare their own financial statements.

Rules of Making Record:

The following rules must be followed while making records in branch accounts:

1. All transactions of the branch office must be recorded in the branch account.

2. The branch account must be reconciled with the books of the head office on a regular basis.

3. The branch account must be updated on a regular basis to reflect the current financial position of the branch office.

Branches (Sub-Disciplines) of Accounting:

Branches or sub-disciplines of accounting refer to the various areas of specialization within the field of accounting. Some of the major branches of accounting are as follows:

1. Financial Accounting: This branch of accounting deals with the preparation of financial statements that are used by external stakeholders such as investors, creditors, and regulators.

2. Cost Accounting: This branch of accounting deals with the calculation and control of costs within an organization.

3. Management Accounting: This branch of accounting deals with the use of financial information to make management decisions.

4. Tax Accounting: This branch of accounting deals with tax planning, preparation, and compliance.

5. Auditing: This branch of accounting involves the examination of financial statements to ensure their accuracy and compliance with accounting standards.

6. Forensic Accounting: This branch of accounting involves the investigation of financial fraud and other financial crimes.

In conclusion, branch accounts are important tools for companies to keep track of the financial performance of their branch offices. There are two types of branches, dependent and independent, and each has its own set of rules for making record in branch accounts. Additionally, there are several branches or sub-disciplines of accounting that specialize in different areas of financial management.

Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization.
Branches can be classified into two types.

Dependent Branches. The term dependent branch means a branch which does not maintain its own set of books. ...Independent Branch. ...Fixed Assets. ...Fixed Liabilities. ...Transfer of Goods. ...Current Assets and Liabilities. ...Remittances. ...Revenue items.