Module includes an introduction, reconciling the books of the home office and the branch, and sample problems on billed price for shipments of merchandise with recorded allowance for overvaluation. If at the end of an accounting period the balance of the investment in branch ledger account in the accounting records of the home office is $20,000 and the balance of the home office account in the accounting records of the branch (after the branch recorded closing entries) is $25,500, the most likely explanation for the discrepancy of $5,500. Home office - branch and agency accounting in their effort to generate more sales, business firms usually open sales outlets the creation of sales outlets develops business in distant areas or improves the company¶s share of existing markets through more effective and efficient contact with the customers.
Home office and branch 200338487-p2-105-agency-home-office-and-branch-accounting-key-answersdoc chapter 12 construction and loci loci and construction igcse math chapter 12 chapter 12 chapter 12 chapter 12 chapter 12 particle kinematics engineering dynamics angular momentum acceleration velocity position angular momentum. Foreign parent home office (fpho) refers to the aggregate non- usb activities of fc thus, if fc is comprised of a uk branch (ho), a french branch and a us branch, fpho would refer to the exclusive combinat ion of. Home office, agency and branch accounting quiz 2- nov 2013 1 on march 31, 20013 star corporation, a cosmetic manufacturing company, opened an agency to take care of marketing its products in northern luzon. A branch office is not a separate legal entity of the parent corporation accordingly, operating a branch office is actually just having the foreign parent corporation operating in the us.
Branch expenses are paid direct from head office and the branch has to remit all cash received into the head office bank account at mangalore from the following details, relating to calendar year 2005, prepare the accounts in the head office ledger and ascertain branch profits. English vocabulary in the office - word lists for office equipment, office stationery and office furniture, online lessons and free printable worksheets for english students. Reconciliation of investment in branch and home office accounts as discussed above, the balances of the home office and investment in branch accounts should be equal or the same in reality, however, because of timing differences and recording errors, these two accounts rarely balance.
A home office inventory shipment to the branch on december 28, 2012, was recorded by the branch on january 4, 2013 the billing of p 24,000 was at cost 3 the home office incurred p 14,400 of advertising expenses and allocated p 6,000 of this amount to the branch on december 15, 2012. This is the professional exam level question on the topic of branch accounting it is moderately difficult file size : 112 mb format: pdf you must. Free gamified quizzes on every subject that students play in class and at home pick an existing quiz or create your own for review, formative assessment, and more.
Home office national statistics part of a collection: operation of police powers under the terrorism act 2000 statistics , counter terrorism statistics , policing statistics and crime statistics. Learn home office with free interactive flashcards choose from 479 different sets of home office flashcards on quizlet. At microsoft our mission and values are to help people and businesses throughout the world realize their full potential.
Welcome to the quizmoz home office furniture quizquizmoz offers one of the internet's largest collection of quizzes for you to tease your brain and pit your wits against the experienced quizmoz quiz masters. Head office may send goods to branch either at cost or at pro-forma invoice price in previous section of this chapter we have discussed accounting treatment for a dependent branch to which the goods are sent to branch at cost price. Reciprocal ledger accounts – branch books • accounting records maintained by a branch include a home office ledger account • this account reflects all activity between the branch and home office • home office account is a quasi-ownership equity account that shows the net investment by the home office in the branch. Lawyers within the parent firm with local contacts are also far more likely to stay in the branch office, feel a loyalty to the home office, and show more potential for further growth even with local contacts, integrating an attorney into a new location can be difficult.
Agency = maintains samples of inventory = any cash receipt/disbursement accounted for like petty cash fund = does not maintain books branch = have their own books = capital accounts in books is called home office - current. Home office and branch quiz essay home office and branch 1 the carigara branch of the apparel international, inc is billed for merchandise by the home office at 20% above cost the branch in turn prices merchandise for sales purposes at 25% above on october 8, 2012 all of. Home office and branch accounting quiz 3 dec 1, 2103 a baguio fresh products maintains two branches: manila and cebu the products are shipped at a billing rate of 20% above cost with the freight paid by the party shipping/transferring the goods.