1. Branch & Departmental Accounts Detailed Theory Notes – 15 Slides

2. Meaning of Branch Accounts • Branches are extensions of a business at different locations.

3. Objects • To know branch profit, stock, debtors and control operations.

4. Types of Branches • Dependent, independent, foreign branches.

5. Debtors System • Used for dependent branches to find profit.

6. Invoice Price Method • Goods sent to branch at invoice price to maintain control.

7. Accounting for Branches • Branch account, stock account, adjustment accounts prepared.

8. Departmental Accounting • Used when business has departments instead of branches.

9. Features of Departmental Accounting • Separate accounts for each department.

10. Advantages • Helps compare performance among departments.

11. Apportionment of Expenses • Common expenses distributed based on ratio.

12. Inter-Departmental Transfers • Transfer of goods between departments.

13. Stock Reserve • To remove unrealised profit on closing stock.

14. Branch Final Accounts • Helps determine profitability.

15. Control Accounts • Maintain control over stock and debtors.

16. Conclusion • Branch and departmental accounting aid internal control.