FINANCIAL ACCOUNTING SSS3 SECOND TERM              

WEEK 7

INTRODUCTION TO BRANCH ACCOUNTS

Contents

• Meaning of Branch Accounts
• Division of Branch Accounting
• Formats and Illustration

Meaning of Branch Accounts

A branch Account is a system of accounting adopted to record the transactions of a small part of a business organization which has or has not had some degree of independence.

Divisions of Branch Accounting

The divisions can be:

Where the head office keeps all the accounts: This happens when the branch is fully dependent on the head office. In this case, the following accounts are kept.

1. Branch stock A/C
2. Goods sent to branch A/C
3. Branch stock adjustment A/C
4. Branch debtors A/C (where credit sales are allowed)
5. Branch bank A/C
6. Branch profit…