Branch Accounts
Accounts · 50 practice questions
Objectives of branch accounts; the branch account in the head office books; the head office account; reconciliation of branch and head office books.
- Understand the reasons for preparing branch accounts.
- Calculate profit or loss from branches.
- Reconcile differences between branch and head office accounts.
Try a few questions
- Practice question 1
A branch has an opening stock (at selling price) of ₦20,000, goods received from head office (at selling price) of ₦90,000, and closing stock (at selling price) of ₦15,000. Branch sales for the period is
- A.₦125,000
- B.₦90,000
- C.₦95,000
- D.₦110,000
Show the answer
C. ₦95,000
Branch sales = 20,000 + 90,000 - 15,000 = ₦95,000.
- Practice question 2
A branch current account, maintained at head office, specifically can be used instead of separate branch stock and adjustment accounts to track
- A.the overall branch position
- B.the head office's own separate, unrelated trading activities
- C.only the branch's own staff payroll, with no reference to overall position
- D.a factor entirely unrelated to the overall branch position of any kind
Show the answer
A. the overall branch position
A branch current account specifically can be used instead of separate branch stock and adjustment accounts to track the overall branch position.
- Practice question 3
A branch's petty cash expenses, where the branch is dependent on head office, specifically may still be recorded directly in the branch's own books if
- A.a factor entirely unrelated to a local float maintained at the branch
- B.no float of any kind is actually maintained at the branch
- C.a local float is maintained
- D.head office has, in fact, taken over every single expense recording duty
Show the answer
C. a local float is maintained
A dependent branch's petty cash expenses specifically may still be recorded directly in its own books if a local float is maintained.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Principles of Double Entry
- Ethics in Accounting
- Cash Book
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Accounts of Not-For-Profit-Making Organizations
- Departmental Accounts
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