Objectives of Branch Accounting
The main object of keeping branch accounts is dependent on the nature of the business and specific need of a particular branch. The objectives of keeping the branch accounts acceptable to all business are (i) To know the profit or loss of each branch separately. (ii) To ascertain the financial position of each branch on a particular date. (ii) To know the cash and goods requirements of the various branches (iv) To evaluated the progress and performance of each branch. (v) To calculate commission for payment to the managers, if based on profits of branch. (v) To know the profitability of each branch and type of business for expansion of the business. (vii) To give concrete suggestions for the improvement in the working of the various branches (viii) To meet the requirements of specific enactments as all branches of a company must keep the accounts for audit purposes.
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