 What is Branch Account?

It is the account prepared by and in the books of head office which represents the trading activities of
a branch. Where a business has several selling branches, it is essential that complete records be kept of
the transactions relating to each branch, so that the head office can prepare accounts there from
showing the working results of each branch.

 What is foreign branch?

A foreign branch office is a representation of a company in a foreign country that usually can do
commercial transaction on its own. Depending on the law of the country, the branch office can or
should be a limited company, where the shares are held by the parent company abroad.

 What are allocation expenses

An expense allocation occurs when indirect costs are assigned
to cost objects. Expense allocations are required by several accounting frameworks in order to
report the full cost of inventory in the financial statements

 Cost Price
Cost price is the total amount of money that it costs a manufacturer to produce a given product or
provide a given service. Cost price is often considered sensitive information that the
manufacturer wants to protect from both customers and competitors.

 Who is a partner
A partner is a member in a partnership, an entity in which both the profits or losses of a business
or other venture are shared between all members.

 What is realisation account

Realisation account refers to an account opened by the firm when it goes to dissolution to record
the profit made from the sale of assets and loss suffered on the settlement of liabilities

 Types of repossession
Partial Repossession and Complete Repossession

 What is sacrificing ratio

The sacrifice ratio is an economic ratio that measures the effect of rising and falling inflation on
a country's total production and output. Costs are associated with the slowing of economic output
in response to a drop in inflation.

 what are the expenses which cannot be apportioned

There are certain expenses which cannot be apportioned or allocated among the different
departments on a suitable basis, the same should be transferred to General Profit and Loss
Account (e.g., Interest on Capital, Debenture Interest, Loss on sale of assets, Interest on loan,
General Manager's Salary etc.)

 what are the two types of prices at which goods are supplied to branch
Invoiced at selling and Invoiced at cost price