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Classfication of Classification of Branches
Branches
FOR ONLINE READING ONLY
Local Branches Foreign Branch
Autonomous Non-autonomous
branches branches
LANGUAGE EDITING
Figure 5.1: Classification of branch accounts
Activity 5.1 the head office. Examples of entities that
Use different sources of information have non-autonomous branches in Tanzania
including library and internet to conduct include those operating in the passenger
desk research. The following are guiding transportation industry. For example, bus
questions: services operators have agencies in different
(a) From an accounting perspective,
discuss the relevance of a branch regions/bus stations for ticket booking, and
and branch accounting in general. fuel retailing companies which have petrol
(b) What are the advantages and stations across the country.
limitations of branch accounting. The nature of the operations of non-
(c) Identify at least three companies autonomous branches can be in one of the
that operate in Tanzania which have following forms:
foreign branches. (a) A branch is established as an agent of
(d) In the current era of advanced
information technology, is there still the head office for receiving customers’
a need for a company to establish orders for the products and/or services
branches while the internet could offered by the entity. Then it remits the
facilitate e-commerce? orders to the head office for execution.
Write a report regarding branch (b) A branch is established as a retail
accounting practiced in Tanzania. selling unit for the products from head
office.
Non-autonomous or
integrated branches (c) A branch is established as a wholesale
delivery unit for the products supplied
As identified above, non-autonomous by the head office.
branches are those which do not have As a result, the head office prepares and
the power to prepare their own books of maintains the books of accounts of the
accounts. They are wholly controlled by branch to monitor their operations closely.
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