System one-the head office maintains all the accounts, Financial Accounting

SYSTEM ONE-THE HEAD OFFICE MAINTAINS ALL THE ACCOUNTS

This system is suitable for an enterprise that has small branches (possibly in another area of the town or city where the Head Office –HO– is situated), which sell goods supplied by the HO. On the sale of goods, cash is received which should be banked intact into the local branch of a bank; the bank can be instructed to credit the Head Office account, which is maintained at a different branch of the same bank. Cash expenditure by a branch is normally funded by an imp rest provided by the HO, replenished at regular intervals by a cheque for the actual amount of expenditure incurred.  Where credit sales are permitted at a branch, each invoice raised at the branch will be made out in the triplicate; one copy is given to the customer as the invoice; the second copy is sent (as part of a batch of invoices) to the HO; the third is retained by the branch for reference. All goods should be purchased through a central buying department at the HO.  Goods are issued to branches on the basis of requisitions received from branch managers.  Of course it should be realized, that with the advent of computers the amount of paperwork may be substantially reduced and procedures not exactly as described.

The branch manager should be required to forward to HO at weekly, fortnightly or monthly intervals, returns giving particulars of goods received from and returned to HO, cash and credit sales, cash received from debtors, expenses, cash banked and stock and cash in hand at the end of the period. From these, the HO will maintain accounts for the branch in the HO books.

Posted Date: 12/12/2012 1:08:37 AM | Location : United States







Related Discussions:- System one-the head office maintains all the accounts, Assignment Help, Ask Question on System one-the head office maintains all the accounts, Get Answer, Expert's Help, System one-the head office maintains all the accounts Discussions

Write discussion on System one-the head office maintains all the accounts
Your posts are moderated
Related Questions
Answer both parts of this task. Part (i) is worth a maximum of 5 marks and Part (ii) is worth a maximum of 10 marks. (i) List the elements of the tort of negligence. (ii) Enr

Concept of accounting for Wealth creation It is significant to recognise that generating wealth for the owners isn't the same as seeking to maximise the current year's profit.

Go to your assigned corporation's website and access their latest annual report. Answer the following questions regarding their derivative and foreign currency transactions. 1.

WILLS A will is the legal declaration by a person of his wishes or intentions regarding the disposition of his property after his death, duly made and executed according to the p

a recommendation regarding the current south African vat system

Suppose the interest rate for a one-period bond is 4% between the current period and the next. Then the rate becomes 5% for ever. (a) What is the price of an asset paying (1,1,1

The Major Assignment Business Case Study is about American Cable Communications' proposed acquisition of the firm Air Thread Connections. The case study is available from the folde

On July 1, 2010, Spear Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2010 and mature on April 1, 2020. Interest is payable sem

Define why country in rigorous recession reflect on devaluation? Countries can deal with the both internal problems with external solutions. Why might a country in rigorous rec

The bid-offer spread as a function of daily trading volume is given by :p(q) = a + b*exp(cq) where q = daily trading volume a = 0.08 b= 0.10 c = 0.05 A trader wants to unwind