Directions: Choose the correct option for the given question.

Under which of the following methods, branch account is not necessary for calculating branch profit?

Under the Analytical System (Stock and Debtors System), separate branch accounts are maintained for stock, debtors, cash, etc. The profit is calculated directly from these accounts and a Branch Profit and Loss Account - no separate 'branch account' showing overall profit is necessary. The system breaks down branch operations into detailed components.