The decisions made at the HO are communicated to branch offices and they work according to the instructions of the HO. The operations of branches may vary from one to another and so the accounting of branches depends upon the nature, size, geographical location, opera tions, etc. Branch accounting is an accounting system where separate accounts are maintained for all branch offices of a company. 3.a. AG Pharma has taken deposits from the public under the name Public Deposit, for a duration of5 years, for a total amount of Rs 1 crores. Discuss by passing a journal entry how AG Pharmawill record the transaction in the books of original entryReflect by preparing the Balance Sheet how the transaction will be reflected in the books ofaccounts by following the correct classification of current and non -current item. Give reasonfor such classification

Public deposits means the unsecured amount of money invited through companies from public mainly for…

Answered: 3.a. AG Pharma has taken deposits from…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The decisions made at the HO are communicated to branch offices and they work according to the instructions of the HO. The operations of branches may vary from one to another and so the accounting of branches depends upon the nature, size, geographical location, opera tions, etc. Branch accounting is an accounting system where separate accounts are maintained for all branch offices of a company.

3.a. AG Pharma has taken deposits from the public under the name Public Deposit, for a duration of
5 years, for a total amount of Rs 1 crores. Discuss by passing a journal entry how AG Pharma
will record the transaction in the books of original entry
Reflect by preparing the Balance Sheet how the transaction will be reflected in the books of
accounts by following the correct classification of current and non -current item. Give reason
for such classification

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