Analytical Process of Branch Account

What is??
          Branch Account is a combination of Personal Account of a branch as a debtor and Nominal Account because it is prepared to ascertain profit and loss made by the Branch Office. Stock and Debtor Method : This is another method of calculating profit and loss of a branch. This method is also called Analytical Method.

           In this method we have to create some Ledger Accounts. Let's see those accounts below.........

1. Branch Account
2. Goods Send to Branch Account
3. Branch Debtors Account
4. Branch Expenses Account
5. Branch Profit & Loss Account

1. For Goods Send to Branch...
     i. Branchh Stock A/c (Dr.)
           To Goods Send to Branch A/c

2. For Goods Returned by Branch...
     i. Goods send to Branch A/c (Dr.)

           To Branch Stock A/c

3. For Cash Sales...
     i. Branch* / Branch Cash** A/c (Dr.)

           To Branch Stock A/c
                      * If send Immediately
                      ** If not Send Immediately

4. For Credit Sales...
     i. Branch Debtors A/c (Dr.) 

           To Branch Stock A/c

5. For Bad Debt, Discount Allowed...
    i.
       Bad Debt A/c (Dr.)
       Discount Allowed A/c (Dr.)
            To Debtors A/c

    ii.
        Branch Profit & Loss A/c (Dr.)
            To Bad Debt A/c
            To Discount Allowed A/c
                       * Transfer to Branch Profit & Loss

6. Goods Returned By Debtors...
     i. Branch Stock A/c (Dr.) 

           To Branch Debtors A/c

7. For Collection from Debtors...
     i. Bank / Branch Cash A/c (Dr.) 

           To Branch Stock A/c

8. For Branch Expenses...
    i.
      Branch Expenses A/c (Dr.)
            To Bank / Branch Cash A/c
    ii.
       Branch Profit & Loss A/c (Dr.)
             To Branch Expenses A/c

9. Balance of Branch stock represents "Gross Profit or Loss" transferred to "Branch Profit & Loss A/c"

10. For balance of Branch Profit & Loss A/c represents Net profit or Net Loss transferred to "General Profit & Loss account"