A dependent branch is a branch that does not maintain a complete set of books of accounts independently. Its transactions are generally controlled by the head office, which supplies goods, provides funds, and records the branch transactions. For accounting purposes, the accounts of a dependent branch may be maintained under three main systems: the Debtors System, the Stock and Debtors System, and the Final Accounts System. Under the Debtors System, also known as the simple branch accounting system, the head office maintains a Branch Account for each dependent branch. The branch does not maintain a complete set of accounts. The Branch Account is prepared in the head office books and is generally debited with the opening balance of assets such as branch cash, debtors and stock, goods sent to the branch, and expenses incurred by the head office on behalf of the branch. It is credited with cash remitted by the branch, goods returned to the head office, and closing balances of branch assets. The balancing figure represents the profit or loss of the branch. If the credit side exceeds the debit side, there is a branch profit; if the debit side exceeds the credit side, there is a branch loss. This system is simple and is suitable where the transactions of the branch are limited. Under the Stock and Debtors System,