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


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
accountability through conceptual framework in australia eassy on this topic with research

Suppose you are a financial manager of Yuen Cheong Manufacturng Company. Due to the rising demand of product X, Yuen Cheong Manufacturng Company decides to open a new production pl

We consider two identical firms that produce the same good. The demand for that good is the function D(p) = 1 - p where p is the unit price. Firms incur no cost. The competition

Shannon Kampa is in talks with Resul Ozbayrak Leaseco, a leasing company, to rent store space for new stores that Shannon is considering adding to her high-end natural foods chain.

following are the amounts of the assets and liabilities of St. Kitts Travel Agency at December 31, 2010, the end of the current year, and its revenue and expenses for the year. The

How to determine the market economy Within a market economy there are strong competitive forces at work which ensure that failure to enhance owners' wealth won't be tolerated f

IDEAL MINORITY INTEREST The minority interest ideally is entitled to the profit after tax in minority interest. However due to consolidation, the profits of the subsidiary compan

content of financial statement with refrence to indian company

Static Balancing : This balancing is complete in the plane of unbalance. Dynamic Balancing : In this case two balance planes are needed because forces along couples are to