i). To ensure cash and stock of goods in custody of the branch are safeguarded.
ii). To determine the profit/ loss of the branch and compare that profitability with profitability of other branches
iii). To help in calculating commission to be paid by branch managers if the commission is calculated based on profitability.
iv). To ensure proper control of branches
v). It’s a statutory requirement to keep proper books of accounts for branches for audit purposes.
Wilfykil answered the question on February 11, 2019 at 10:42
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