Branch accounts

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Branch accounts

  1. 1. 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
  2. 2. 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 ..
  3. 3. Download link http://www.scribd.com/doc/21985249/Accounting-for-Entrepreneurs
  4. 4. Download link http://www.scribd.com/doc/30611042/Sale-of-Goods-Act-and-Related-Provisions-for-Entrepreneurs http://www.scribd.com/doc/19492869/Accounting http://www.scribd.com/doc/22783825/Accounting-Process http://www.scribd.com/doc/11627269/Final-Accounts http://www.scribd.com/doc/22354533/Business-Model-of-Afterschoool http://www.scribd.com/doc/23393807/17-July-Advanced-Accounting http://www.scribd.com/doc/23393464/10-July-accounting-II
  5. 5. What are types of branches ? Inland branches foreigh branches dependent branches autonomous branches
  6. 6. Dependent branches – accounts They keep following accounts : 1. petty cash book 2. stock register 3. customer's accounts
  7. 7. Methods of accounting 1 stock and debtors system 2. debtors system 3. final account system 4. wholesale branch system
  8. 8. 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
  9. 9. Accounts maintained by branches Branches maintain memorandum debtors accounts (if they are allowed to sell on credit) thus they maintain only memorandum debtors account
  10. 10. Despatch of goods to branches Goods are despatched at any of these : 1. cost 2. invoice price 3. cost + fixed % of loading
  11. 11. Format of branch account <ul><li>Debit side </li></ul><ul><li>Opening stock </li></ul><ul><li>Goods sent to branch account </li></ul><ul><li>Rent </li></ul><ul><li>Wages </li></ul><ul><li>(all expenses by branch) </li></ul><ul><li>Stock reserve (closing stock) </li></ul><ul><li>Credit side </li></ul><ul><li>Stock reserve (for opening stock) </li></ul><ul><li>Cash sales </li></ul><ul><li>Cash received from debtors </li></ul><ul><li>Goods return </li></ul><ul><li>Closing stock of goods and debtors </li></ul>
  12. 12. Format of memorandum debtors account <ul><li>Debit side </li></ul><ul><li>Sale (credit) </li></ul><ul><li>Credit side </li></ul><ul><li>Cash received </li></ul><ul><li>Discount </li></ul><ul><li>Goods returned </li></ul><ul><li>Bad debts </li></ul><ul><li>Allowances </li></ul><ul><li>Balance </li></ul>
  13. 13. 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.
  14. 14. 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
  15. 15. FORMAT BRANCH DEBTORS ACCOUNT <ul><li>DEBIT SIDE </li></ul><ul><li>Stock account (balancing figure denoting total credit sales ) </li></ul><ul><li>CEDIT SIDE </li></ul><ul><li>Cash received </li></ul><ul><li>Branch adjustment a/c ( Bad debts etc.) </li></ul>
  16. 16. Format branch stock account <ul><li>Debit side </li></ul><ul><li>Opening balance </li></ul><ul><li>Goods sent </li></ul><ul><li>Credit side </li></ul><ul><li>Cash account </li></ul><ul><li>Debtors a/c (credit sales) </li></ul><ul><li>Goods returns by branch </li></ul><ul><li>Balance c/d </li></ul>
  17. 17. Format branch adjustment a/c – I part <ul><li>Debit side </li></ul><ul><li>Stock reserve </li></ul><ul><li>Branch stock a/c </li></ul><ul><li>Gross profit (balancing figure </li></ul><ul><li>Credit side </li></ul><ul><li>Goods sent to branch a/c </li></ul>
  18. 18. Format branch adjustment a/c – II part <ul><li>Debit side </li></ul><ul><li>Branch debtors </li></ul><ul><li>Branch stock </li></ul><ul><li>Branch expenses </li></ul><ul><li>New profit </li></ul><ul><li>Credit side </li></ul><ul><li>Gross profit </li></ul>
  19. 19. THANKS.... GIVE YOUR SUGGESTIONS AND JOIN AFTERSCHOOOL NETWORK / START AFTERSCHOOOL SOCIAL ENTREPRENEURSHIP NETWORK IN YOUR CITY / COLLEGE [email_address] PGPSE – WORLD'S MOST COMPREHENSIVE PROGRAMME IN SOCIAL ENTREPRENEURSHIP

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