Which one of the following is not true about a dependent branch ........

General Accounting Principles Special Journals

Which one of the following is not true about a dependent branch?

these branches sell only those goods which are received from the head office

major expenses of the branch are paid by head office

petty expenses are paid by the branch and petty cash account is prepared at the branch.

these branches maintain their own books of accounts

- Understanding Dependent Branch Characteristics:

- Dependent branches typically operate under the direction of the head office.

- They usually sell goods provided by the head office and have their major expenses covered by it.

- They often manage their own petty cash for small immediate expenses.

- Option Analysis:

- Option 1: True; dependent branches sell goods from the head office.

- Option 2: True; major expenses are paid by the head office.

- Option 3: True; branches typically handle their own petty cash expenses.

- Option 4: Not true; dependent branches generally do not maintain their own complete set of books, which are managed by the head office.

- The correct answer is such department maintain their own books of accounts from Option 4.

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