Difference between Departmental Accounting and Branch Accounting

S.no Basis Departmental Accounting Branch Accounting

1. Methods of Same accounting method is used There are different methods
keeping for preparing accounts of all the of keeping branch accounts.
accounts departments. Different methods may be
used for different branches.
2. Location All the departments are situated at Branches are situated at
one place. different places.
3. Apportionme Common expenses are There is no common
nt of apportioned on some equitable expense. Therefore, the
expenses basis. problem of apportionment
does not arise.
4. Incorporation There is no need of passing At the end of the year,
entries incorporation entries in the books incorporation entries are
of the head office. passed in case of
independent branch system.
5. Current There is no need to maintain Usually, it becomes
Accounts current accounts of other necessary, by a branch to
departments by a department. maintain current accounts of
some other branches.