Chapter 7 Branch Accounting. Section 1 Branches  1.The main form of branches branch; branches; chain; branch  2.The form of branch accounting non-independent.

Slides:

Advertisements

Similar presentations

Accounting for Branches Combined Financial Statements

Advertisements

©The McGraw-Hill Companies, Inc. 2006McGraw-Hill/Irwin Chapter 9 Consolidated Financial Statements: Income Taxes, Cash Flows, and Installment Acquisitions.

Learning objectives After you have studied this chapter, you should be able to: Explain the terms returns inwards, returns outwards, carriage inwards and.

© PHI Learning, All rights reserved.1 Financial Accounting: A Managerial Perspective Third Edition Prepared by R. Narayanaswamy Indian Institute.

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Investments 12.

中六級會計學原理科 Principles of Accounts Branch Accounts.

Introduction to Financial Accounting Unit 6 1 Introduction to Financial Accounting Unit 6 Income Statement – Structure, Categories and Formats.

Chapter 2 The Treasury. Treasury Department A bank has to receive cash and pay cash for its various activities, so Most of banks transactions are presented.

Merchandising Business: Financial Statements. Cost of Goods Sold Merchandising businesses have the extra cost of inventory compared to service businesses.

ACCOUNTING FOR MERCHANDISING OPERATIONS

Accounting Principles

The Operating Cycle and Merchandising Operations 6.

MERCHANDISING COMPANY

Acct 2210: Chp 4 (Omit pg 227 & the Appendix) Accounting for Merchandising Businesses McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies,

Appendix D Investments in Other Corporations © 2009 The McGraw-Hill Companies, Inc.

13 Investments and Fair Value Accounting

© 2004 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 12 Investments.

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright.

Copyright © 2007 Prentice-Hall. All rights reserved 1 Merchandising Operations Chapter 5.

Investments in Stocks and Bonds of Other Companies Chapter 23.

©2006 Prentice Hall Business Publishing Financial Accounting, 6/e Harrison/Horngren 1 Long-Term Investments and International Operations Chapter 10.

Translation of Foreign Currency Financial Statements

© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved Chapter 4 Accounting for Branches Combined Financial Statements.

FINANCIAL ACCOUNTING CHAPTER 1 CONSIGNMENT ACCOUNTS

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 Acquisitions and Consolidated Statements © The McGraw-Hill Companies, Inc., Part One:

Reporting and Interpreting Investments in Other Corporations Chapter 12 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Reporting & Analyzing Merchandising Operations

Unit 1.5 Accounting for a Merchandising Operation.

Chapter 5 The Income Statement

CHAPTER 1 CONSIGNMENT ACCOUNTS

Chapter 10 Investments. Learning Objectives 1.Identify why companies invest in debt and equity securities and classify investments 2.Account for investments.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2006 Investments and International Operations Chapter 15.

Needles Powers Principles of Financial Accounting 12e Accounting for Merchandising Operations 6 C H A P T E R ©human/iStockphoto.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter Five Accounting for Merchandising Businesses.

ACCOUNTING FOR MERCHANDISING OPERATIONS

Accounting for Branches Combined Financial Statements Pertemuan 5-6 Matakuliah: Akuntansi Keuangan Lanjutan I Tahun: 2010.

ACCOUNTING 2 CHAPTER 2.2. FINANCIAL STATEMENTS The Income Statement The Statement of Retained Earnings The Balance Sheet.

McGraw-Hill/ Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved Accounting for Branch Operation 11 Electronic Presentation.

© McGraw-Hill Ryerson Limited, 2003 McGraw-Hill Ryerson Chapter 12 Reporting and Interpreting Investments in Other Companies.

Meaning, Objectives and Terminology of Accounting.

14-1 Journal Entries for Trading Securities Chapter 14 Illustrated Solution: Problem

© Prentice-Hall of India Private Limited, All rights reserved.1 Financial Accounting: A Managerial Perspective Second Edition Prepared by R. Narayanaswamy.

Chapter 17: Investments 1. 2 Investment in Marketable Equity Securities - Overview Equity investments represent ownership of another company’s outstanding.

Controlling and Reporting Merchandise Sales Inventory Quantities Inventory Costs Financial Statements Unsold Inventory Balance Sheet Sold Inventory Income.

©2012 McGraw-Hill Ryerson Limited 1 of 30 Learning Objectives 1.Identify reasons for a foreign investment decision (later analyze). (LO1) 2.Examine the.

Chapter – 3 Branch Accounting

1 Module 7: Intercorporate Investments. 2 Investment in Marketable Equity Securities - Overview Equity investments represent ownership of another company’s.

Chapter 17 Accounting for Co-operative Societies.

©CourseCollege.com 1 19 Investments Learning Objectives 1.Account for Trading Investments 2.Account for Debt Investments 3.Account for Stock Investments.

Chapter Four Accounting for Merchandising Businesses McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Customer Order and Account Management Business Processes Chapter 7.

Module 7: Intercorporate Investments

Companies make investments for three reasons.

© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Intercompany Inventory Transactions

Intercompany Profit Transactions – Bonds

Consolidated Financial Statements – Intercompany Asset Transactions

Chapter 17 – Trading Account, Profit and Loss Account and Closing Entries Learning Outcome This chapter shows how to prepare, for a sole trader, General.

Accounting cycle Made by: Yashvi Shah.

A Accounting for Investments Principles of Accounting 12e APPENDIX

Electronic Presentation by Douglas Cloud Pepperdine University

Inventory Costing – Part 1

Chapter 12 Investments.

Purchase Returns and Allowances

Prepared by: Keri Norrie, Camosun College

BUSINESS HIGH SCHOOL-ACCOUNTING II

إعداد القوائم المالية Preparation of Financial Statements

Corporations: Organization, Stock Transactions, and Dividends

Chapter 10 Accounting for a Merchandising Business

Presentation transcript:

Chapter 7 Branch Accounting

Section 1 Branches  1.The main form of branches branch; branches; chain; branch  2.The form of branch accounting non-independent accounting branch accounting system semi-independent branch of the accounting system accounting completely independent accounting branch accounting system

3 Section 2 The transaction between headquarters and branch offices  The type of current transactions between headquarters and branch The establishment of new branches Transfer between headquarters and branch stock in trade  Different types of transactions under the account settings  When setting up a new set of branches between the subjects Headquarters set up "branch exchange" Branches set up "between the headquarters”  Transfer between headquarters and branch stock in trade Headquarters set up "branches Stock delivered" Branches set up "headquarters shipped inventory."

4 Section 3 Main content of branch accounting  Headquarters accounting records - Central Accounting System  Branch accounting records - subsidiary accounting system  Corresponding to the offset account  Corresponding to non-consolidated accounts  Internal transactions between headquarters and branch offices have to be offset by unrealized gains and losses  Preparation of combined financial statements

5 Accounting treatment of the new branch’s accounting treatment Branch account Headquarters contacts Headquarters account Between branches

6 The treatment of Headquarters transfering goods to the branch Headquarters account Transction between branches Delivery of branch inventory 8 000

7 Branch account transported to the headquarter headquarters contacts 8 000

8 Inventory valuation in the time the headquarters of the transfer of inventory to stock branches  At cost  Cost-plus pricing  The market price valuation

9 Section 4 other accounting issues of branches 1.Freight of shipping Headquarters: branch exchanges delivered to inventory inventory increase cash 500 Branch: transported to the headquarters inventory headquarters freight 500 headquarters between

10  Excess freight don’t included in the cost of goods the fowollowing is branches’entries when branches returns half of the goods received Headquarters contacts Transported to the headquarters inventory 6250 Headquarters freight 25 Cash 250 Headquarters of the accounting entries Delivery of branch inventory 5000 Inventory increase 1250 Over 500 freight loss 500 Branches’ contraction 6750

11 profit of branch office Branch reports profit Stock increase achievement Profit of branch office

12 Closing entries in headquarters Inventories increase in price Unrealizedachieveme nt Balance Branch profits achievement Turn out Branch News Reported profit Transaction Branch reports profit Undistributed profit Branch profits Headquarters profit