FIN611 Advanced Financial Accounting GDB Solution Spring 2013

The case:

Hamza and Company is Located at Karachi and has opened a branch in Lahore recently. Mr. Hassan in accounts department is responsible for maintaining accounts of Lahore Branch. Mr. Hassan knows that there are three types of systems for maintaining branch account at head office. These are

  • Debtor System
  • Income┬áStatement
  • Stock and Debtor System

You, as students of accounting and finance, are required to Guide Mr. Hassan about the system which should be followed for maintaining branch accounts at Head office Karachi. Your arguments should be supported by logical rationale.

Idea Solution:

i think debtor system is best bcos debtor system mai branch manager ko har branch k liye different accounts bnane hote hai which will emerge in head office ab aik branch uss ki karachi hai ss k lie wo elehda se branch a/c bnaye ga ar lhr wali branch k lie elehda se …jahan tak rhi profit n loss ki baat to uss mai aisa nhi hota uss mai head office guide karta hai branch manager ko k kia karna ha ar ss ma cost par goods send nhi ki jati proforma invoice par goods send ki jaati ha….ar rhi stock n debtor system ki baat to uss ma branch stock ko control kiya jata ha n tells shortage n srplus abt branch stock so yh bii nhi hoga …