Akash Kumar Arya

INTRODUCTION If a business consist of several independent activities, or is divided into several departments, for carrying on separate functions, its management is usually interested in finding out the working results of each department to ascertain their relative efficiencies. This can be made possible only if departmental accounts are prepared. Departmental accounts are of great help and assistance to the management as they provide necessary information for controlling the business more intelligently and effectively. It is also helpful in readily identifying all types of wastage, e.g., wastage of material or of money; also, attention is drawn to inadequacies in the working of departments or units into which the business may be divided. You have learnt that a business unit may be operating through a network of branches like those of Bata which has branches all over the country or Snowhite which has branches all over the city of Delhi. You also know that, in such a situation, ea...