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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.


                                                                         Student’s Book Form Five
                                                   128



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     ACCOUNTANCY_DUMMY_23 JUNE.indd   128                                                   23/06/2024   17:35
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