OUR OWN PUBLICATION FROM 1ST JULY, 2018 FOR B.COM

1. B.COM FIRST SEMESTER COMPLETE NOTES (CHOICE BASED) WITH SOLVED FINANCIAL ACCOUNTING BOOK
2. B.COM 3RD SEM COMPLETE NOTES WITH SOLVED BOOKS OF:
*ADVANCED FINANCIAL ACCOUNTING
*BUSINESS STATISTICS SOLVED PAPERS OF LAST 7 YEARS
* FINANCIAL MANAGEMENT BOOK
3. B.COM 5TH SEMESTER COMPLETE NOTES WITH SOLVED BOOKS OF MANAGEMENT ACCOUNTING OF JAIN AND NARANG

Tuesday, November 26, 2013

MCQ - Branch Accounting

State whether the following Statements are ‘True’ or ‘False’:
1.      Under the stock and debtors system Branch Stock Account is a Nominal Account.  F
2.      Under stock and debtors system branch profit is ascertained by opening Branch Adjustment Account.  T
3.      Under debtors system Branch Account discloses profit or loss of the branch.  T
4.      Under debtors system, Branch Account is credited with opening balances of branch assets.  F
5.      Under debtors system, no entry is required in Branch Account for branch expenses paid by the branch out of petty cash.  T
6.      Under stock and debtors system no entry is required for normal loss of stock.  F
7.      Branch stock account is always prepared at cost price.  F
8.      In the case of foreign branches current assets and current liabilities are converted at the rate prevailing on the date of trial balance.  T
9.      In the case of branch keeping full system of accounting, (when branch fixed assets account is maintained in head office account) depreciation for the year is debited to profit and loss account and credited to head office account in branch books.  T
10.  The balances shown by head office account in branch books and branch account in head office books are always equal although the natures of balances differ.  F
11.  Under Debtors System, bad debts and discount allowed figure in the Branch Account.  F
12.  Under Debtors System, Debtors at close are shown on the Debit Side of the Branch Account after adjusting for Bad Debts, discount allowed etc.  F
13.  Under Debtors System, Depreciation is not shown in the Branch Account.  T
14.  Reserve for Bad Debts and Reserve for Discount on Debtors will be recorded separately in the Branch account under the Debtors system.  F
15.  Actual petty expenses incurred by the Branch Account under the Debtors system will not be recorded in the Branch Account.  T
16.  Sales Returns will not appear directly in the Branch Account under the Debtors System.  T
17.  Branch Account under Debtors System is a Real Account.  F
18.  Under Debtors System Branch Account is debited with losses like bad debts, discounts allowed and depreciation.  F
19.  When the Branch Manager is allowed petty cash on Imprest System, the amount remitted by Head Office to reimburse the actual expenses will be debited to the Branch Account.  T
20.  Branch Account is a nominal account in nature and is prepared in the Branch Books.  F
21.  Under debtors system, losses due to pilferage, wastage and other losses of stock due to normal and abnormal reasons are completely ignored.  T
22.  Branch account is a nominal account under debtors system.  T
23.  Branch account is a personal account under final account system.  T

Fill in the Blanks:
1.      The main establishment located at the main place of activity is called the Head Office and the subsidiary establishments located at various places are called Branch.
2.      Goods supplied to Dependent Branches by the Head Office may be either at Cost or at Invoice price.
3.      The One Account System or Debtors System is generally adopted when the branch is fairly small in size.
4.      Stock and debtors system or Analytical method is generally adopted when the branch is Large.
5.      Branch Account is Nominal in nature and is prepared in the Head Office Books
6.      Under Debtors System, credit sales, bad debts, return inward, discounts allowed and depreciation are not takes in the Branch Account.
7.      Under Debtors System fixed assets is shown on the credit side only after deducting the amount of depreciation, if any.
8.      Under the Debtors System, the Head Office will record all the transactions relating to the branch in the Branch Account through Debtors and Creditors relationship between the Branch and the Head Office.
9.      Under the Debtors System, the Reserve for Doubtful Debts /Reserve for Discount on Debtors should be deducted from closing Debtors and only the good closing debtors will be recorded in the Branch Account.
10.  Actual petty expenses incurred by the branch will will not be recorded in the Branch Account under the Debtors System.