B COM

What is??          Debtors or Direct Method. Under this method, Head Office opens only one account for every branch, called “Branch Account”. Branch Account is a combination of Personal Account (of a Branch as a debtor) and nominal account (as it is prepared to ascertain profit or loss made by the Branch). In this method of accounting we firstly we have to create Few ledger Account with named of Branch Account, Memorandum Debtors Account, Goods Send To Debtors Account ===================================== ===== = ============================== After that we have to put this few entries in the Debit side (Left Side) of the First Ledger Account, Branch Account        • To Balance b/d ( For all opening Balance )                  [Stock, Debtors, Petty Cash]        • To Goods send to Branch A/c     ...

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 St...