17 CHAPTER

Accounting for Branches

MEANING OF A BRANCH

A Branch is a subordinate division of an office. The concept of branch presupposes the existence of a head office. According to Sec. 29 of the Companies Act 1956, a branch is any establishment carrying on either the same or substantially the same activity as that carried on by the head office of the company.

CLASSIFICATION OF BRANCHES

From the accounting point of view, Branches may be classified as follows:

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ACCOUNTING FOR DEPENDENT BRANCHES

The branch which does not maintain a complete record of its transactions is said to be dependent one. The head office may maintain the accounts of such ...

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