Quick Answer: What Is Difference Between Branch And Department?

What is an independent branch?

Independent Branches are those which make purchases from outside, get goods from Head Office, supply goods to Head Office and fix the selling price by itself Thus an independent Branch enjoys a good amount of freedom like an American Son..

What are the 7 branches of accounting?

The famous branches or types of accounting include: financial accounting, managerial accounting, cost accounting, auditing, taxation, AIS, fiduciary, and forensic accounting.

What is the function of the branches?

Legislative—Makes laws (Congress, comprised of the House of Representatives and Senate) Executive—Carries out laws (president, vice president, Cabinet, most federal agencies) Judicial—Evaluates laws (Supreme Court and other courts)

What is dependent and independent branch?

Dependent branch accounting :- When the policies and administration of a branch are totally controlled by the head office who also maintains its accounts the branch is called dependent branch. Independent branch:- When the size of the branches is very large their function become complex.

What is meant by departmental accounts?

Departmental Accounting refers to maintaining accounts for one or more branches or departments of the company. Revenues and expenses of the department are recorded and reported separately. The departmental accounts are then consolidated into accounts of the head office to prepare financial statements of the company.

What are the different types of branches?

Branches can be classified into two types.Dependent Branches. The term dependent branch means a branch that does not maintain its own set of books. … Independent Branch. An independent branch means a branch, which maintains its own set of books.

What are the advantages of departmental accounts?

The most significant advantages of departmental accounts are:Individual results of each department can know which helps to compare the performances among all the departments, i.e., the trading results can compare.Departmental accounts help to understand or locate the success, failure, rates of profit, etc.More items…

What are two types of department account?

There are two methods of keeping departmental accounts:Independent Basis: In this method, accounts of each department are maintained separately. Each department prepares Trading and Profit and Loss Account. … Columnar Basis: ADVERTISEMENTS: In this method, there is a single set of books.

What are the 8 branches of accounting?

If you need income tax advice please contact an accountant in your area.Financial Accounting. Financial accounting involves recording and categorizing transactions for business. … Cost Accounting. … Auditing. … Managerial Accounting. … Accounting Information Systems. … Tax Accounting. … Forensic Accounting. … Fiduciary Accounting.

What are the types of branch account?

In other words, these branches are operated and controlled by Head Office. Dependent Branch: Dependent branches are those which do not maintain separate books of account and wholly depend on Head Office. The result of the operation, i.e., profit or loss, is ascertained by Head Office.

What are the need of branch accounting?

The need arises for branch accounting as to ascertain the profitability of each branch separately for a particular accounting period,to ascertain whether the branch should be expanded or closed,to ascertain the requirement of cash and stock for each branch and to ascertain the quantity of stock held by each branch at …

What does Department branch mean?

A department is a technical area of a office which is under the same premises while the branch is an extension of the office with more or less the same features.