What is inter-branch accounts?

Table of Contents

9.1 Defining Accounts for Inter-Branch Transactions. A transaction that takes place in a branch of your bank may involve accounts that are maintained in another branch. For example, a customer has an account in the Head Office branch and approaches another branch of the bank for a cash withdrawal.

What are the rules of branch account?

Preparing Branch Accounts (8 Aspects)

(1) Credit Sales, Bad Debts, Discount Allowed, Sales Returns:
(2) Loss of Stock, Surplus of Stock:
(3) Depreciation of Fixed Assets:
(4) Goods in Transit:
(5) Expenses Incurred by Branch:
(6) Purchase of Fixed Asset by Branch:
(7) Sale of Fixed Asset:

What are the types of branch account?

The eight branches of accounting include the following:

Financial accounting.
Cost accounting.
Auditing.
Managerial accounting.
Accounting information systems.
Tax accounting.
Forensic accounting.
Fiduciary accounting.

What is interbank reconciliation?

Inter-branch reconciliation is a major activity for banks and financial institutions looking to create a balanced co-ordination between their various branches and their activities.

What is inter-branch payment?

Inter-Branch Payment. Transfer of money between accounts at different Royal Bank branches.

Who prepares the branch account?

An independent branch maintains complete set of books of accounts separately. At the end of the year, the branch prepares branch trading account, profit and loss account and balance sheet. 4.

What is golden account?

The journal entries are passed on the basis of the Golden Rules of accounting. To apply these rules one must first ascertain the type of account and then apply these rules. Debit what comes in, Credit what goes out. Debit the receiver, Credit the giver. Debit all expenses Credit all income.

What is Br in banking terms?

A bank reconciliation statement is a summary of banking and business activity that reconciles an entity’s bank account with its financial records.

How do you do Inter branch reconciliation?

Comments on the system/ procedure and records maintained. Test check for any unusual entries put through inter-branch/ head office accounts. Position of outstanding entries; system for locating long outstanding items of high value. Steps taken or proposed to be taken for bringing the reconciliation upto- date.

What is inter branch transfer?

An interbranch transfer is the process of moving inventory from one location to another location within the internal business environment. For example, transfer of inventory from one warehouse to another warehouse.

What does IBB stand for in banking?

What is a branch account?

Branch accounting is a bookkeeping system in which separate accounts are kept for each branch or operating location of an organization. Technically, the branch account is a temporary or nominal ledger account, lasting for a designated accounting period.