Multiple choice

Directions: Choose the correct option for the given question.

A branch account is a personal account under which of the following methods?

  1. Synthetic system

  2. Analytical system

  3. Final account system

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Final Account System (also called the Debtors System), the branch account is treated as a personal account. It records transactions between the head office and branch as if dealing with an independent debtor. In contrast, the Synthetic and Analytical systems treat branch accounts differently - as impersonal accounts focusing on goods flow and profit ascertainment.

Keep practicing — related questions