accounts required and their purposea branch

Question

Accounts required and their purpose

a. Branch Current Account (Head Office Books)

1. Records all transactions branch and head office;
2. The balance represents the investment made by head office in the branch.

b. Head office Current Account (Branch Books)

1. Records all transactions between branch and head office;
2. The balance represents the branch’s capital;
3. Profit and loss account balance must be transfeeed to this account at the end of the period.

c. Final accounts

1. Examination questions
2. Trading Account
3. Trading Account – branch column records
4. Trading Account – combined column records
5. Profit and loss account
6. Balance Sheet
7. The provision for unrealized profit
8. The ‘combined’ column in the trading and profit and loss account