ACCOUNTING SYSTEM

1. DEBTORS SYSTEM

         Debtors system is a system of ascertaining the profit made by a head office at a branch by preparing an account known as "branch account" in the books of head office

2.STOCK AND DEBTORS SYSTEM

         Stock and debtors system is an alternative method to findout the profit or loss made at the branch

3. FINAL ACCOUNT SYSTEM

         The profit or loss of a dependent branch can also be ascertained by  preparing a trading and profit and loss account.This account is usually prepared in cost price.So opening stock, goods sent to branch, goods sreturned by branch, closing stock at branch, etc are recorded only at cost price and not at invoice price.

4.WHOLESALE BRANCH SYSTEM

         Under the wholesale branch system the head office sends th goods to the branch at wholesale price and not at cost.So the goods sent to branches should be credited at whole sale price in the head office trading account.