FEATURES OF DEPENDENT BRANCH

 (1) The branch does not maintain its own set of books.But the head office maintain record of all transactions in respect of branch

(2) Goods are received from the head office.However, the outside purchases by branch are not allowed

(3) Goods are often supplied by head office at cost price. But sometimes they are sent at invoice price or loaded price

(4) All expenses of regular nature directly paid by head office through cheques

(5) All petty expenses at branch are paid by the branch manager from the petty cash received in advance from the head office

(6) Usually branch makes sales on cash basis.But in certain cases credit sales may be made with the authorization from the head office

(7) Cash received on account of cash sales and from debtors is duly remitted to head office or d eposited with a local bank in the account of head office