What Is The Dependent Branch?

When a branch is called a dependent branch?

Dependent Branch: When the policies and administration of a branch are totally controlled by the head office, who also maintains its accounts, the branch is called a dependent branch..

What are the types of branches?

DIFFERENT TYPES OF BRANCHESBranch Account System or Debtors System.Stock and Debtors System.Final Accounts System.Wholesale Branch.

What are the types of branch account?

Though there are eight branches of accounting in total, there are three main types of accounting, according to McAdam & Co. These types are tax accounting, financial accounting and management accounting. Management accounting is useful to all types of businesses and tax accounting is required by the IRS.

What is dependent branch account?

Dependent Branch: A branch which is dependent upon Head Office mainly for “Goods and Cash”. Books of accounts relating to such branch also will be maintained by Head Office. Features of Dependent Branch: … Cash sales and collection from debtors are periodically remitted to Head office.

What do you mean by branch?

A branch can mean the “arm” of a tree, or any other kind of arm––a branch of a bank is a division of the bank. Branch also works as a verb. You might turn onto a little road that branches off a main one. … A branch of a river is called a tributary.

What are the 4 types of accounting?

Though different professional accounting sources may divide accounting careers into different categories, the four types listed here reflect the accounting roles commonly available throughout the profession. These four branches include corporate, public, government, and forensic accounting.

What are the advantages of branch account?

The advantages of branch accounting are that the business is able to identify the financial performance of each of its branches. By making comparisons it can identify inefficient branches and make informed managerial decisions about their future.

What is wholesale branch?

It deals in both retail and wholesale transactions. The profit rates earned by Branches differ between the retail sale and wholesale. … The Head Office sends the goods to Branch at wholesale price and in case all the goods have been sold, there is no problem.

How do we ascertain closing debtors of a branch?

The Branch Account is debited with the opening balance of Petty Cash and the amount of petty cash sent by the head office and is credited with the closing petty cash. For calculating closing petty cash, all expenses paid by the branch are taken into consideration.

What are the disadvantages of branch banking?

Following are the main disadvantages and limitations of branch banking system:Problem of Management: Under the branch banking system a number of difficulties as regards management, … Lack of Initiative: … Monopolistic Tendencies: … Regional Imbalances: … Adverse Linkage Effect: … Inefficient Branches: … Other Defects:

What is a bank branch example?

A semi-independent office of a bank. For example, a bank may have five branches in a city where account holders can make deposits and withdrawals and conduct other business at the place most convenient for them.

What is dependent and independent branch?

Dependent branch accounting :- When the policies and administration of a branch are totally controlled by the head office who also maintains its accounts the branch is called dependent branch. Independent branch:- When the size of the branches is very large their function become complex.