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Branch Accounting Methods

Different kinds of accounting branch methods
Course

Financial Accounting (AC 517)

176 Documents
Students shared 176 documents in this course
Academic year: 2018/2019
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Cebu Institute of Technology – University

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Branch Accouning Methods There are several diferent methods for keeping branch accounts, depending on the nature and complexity of the business and the operaional autonomy of the branch. The most common include:

Debtor system Income statement system Stock and debtor system Final accounts system Where Branch Accouning Applies Branch accouning can also be used for a company's operaing divisions, which usually have more autonomy than branches, as long as the division is not set up legally as a subsidiary company. A branch is not a separate legal enity, although it can (somewhat confusingly) be referred to as an "independent branch" because it keeps its own accouning books.

However, branch accouning is not the same as departmental accouning. Departments may have their own accounts, but they usually operate from the same physical locaion. A branch, by its nature, is a geographically separate enity.

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Branch Accounting Methods

Course: Financial Accounting (AC 517)

176 Documents
Students shared 176 documents in this course

University: Cebu Institute of Technology – University

Was this document helpful?
Branch Accounting Methods
There are several different methods for keeping branch accounts, depending on the nature and
complexity of the business and the operational autonomy of the branch. The most common include:
Debtor system
Income statement system
Stock and debtor system
Final accounts system
Where Branch Accounting Applies
Branch accounting can also be used for a company's operating divisions, which usually have more
autonomy than branches, as long as the division is not set up legally as a subsidiary company. A
branch is not a separate legal entity, although it can (somewhat confusingly) be referred to as an
"independent branch" because it keeps its own accounting books.
However, branch accounting is not the same as departmental accounting. Departments may have
their own accounts, but they usually operate from the same physical location. A branch, by its nature,
is a geographically separate entity.

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