Apex Commercial Enterprises operates several regional sales outlets. One of its outlets, Branch K, keeps its own full set of accounting books under double-entry rules, makes local stock purchases, and extracts its own trial balance at the end of each accounting year. Which of the following accounting features unreservedly applies to Branch K as an independent branch rather than a dependent branch?
- Maintaining a reciprocal Head Office Account in the branch ledger to record all inter-office transactions.Cevap
- BRecording all local purchases of office furniture directly in the branch purchases journal.
- CSubmitting raw transaction vouchers to the head office for all ledger entries and profit determination.
- DTreating cash remittances received from the main office as direct capital contributions to the branch manager.
Cevap
Maintaining a reciprocal Head Office Account in the branch ledger to record all inter-office transactions.
An independent branch maintains a full set of accounting books under double-entry principles, extracts its own trial balance, and records inter-company transactions via a reciprocal Head Office Account in its ledger. Dependent branches, by contrast, do not keep a complete ledger system.
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Anahtar Kavram
Distinction Between Dependent and Independent Branches (Reciprocal Accounts & Autonomy)