Briefly explain four purposes of the branch accounts to an organisation which sells goods through various outlets

      

Briefly explain four purposes of the branch accounts to an organisation which sells goods through various outlets

Answers


Wilfred
i). To ensure cash and stock of goods in custody of the branch are safeguarded.
ii). To determine the profit/ loss of the branch and compare that profitability with profitability of other branches
iii). To help in calculating commission to be paid by branch managers if the commission is calculated based on profitability.
iv). To ensure proper control of branches
v). It’s a statutory requirement to keep proper books of accounts for branches for audit purposes.
Wilfykil answered the question on February 11, 2019 at 10:42


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