Page 57 - Accountancy for Advanced Secondary Schools Teachers Guide Form Five

(c) Final accounts system: Discuss the preparation of final
accounts for each branch to determine profitability.

(d) Wholesale branch system: Explain how branches that act as
wholesalers maintain their accounts and the implications for
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consolidated reporting.

4. Inter-branch transactions

(a) Transfers of goods and services: Explain the accounting
treatment for transfers of goods and services between
branches, including cost and pricing considerations.

(b) Inter-branch settlements: Discuss methods for settling
inter-branch transactions, such as reciprocal accounts or
centralised settlement systems.

5. Reconciliation and consolidation

(a) Branch trial balance: Teach how to prepare a trial balance
for branches and reconcile it with the head office accounts.

(b) Consolidated financial statements: Explain the process of
consolidating branch accounts into the head office financial
statements, including adjustments for internal transactions.

6. Foreign branch accounting

(a) Currency translation: Discuss the principles and methods
for translating foreign branch financial statements into the
home currency, including the use of current rate and temporal
methods.

(b) Exchange rate fluctuations: Explain how exchange rate
fluctuations impact branch accounting and the reporting of
foreign exchange gains and losses.

Teacher’s Guide Form Five
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