Which of the following conclusions is correct with respect to accounting of inland branches?
1
Under Debtors Branch Account System, it is possible to calculate gross profit and net profit.
2
Independent branches are completely autonomous units.
3
Affiliated branches are simply sales agencies and are controlled by the Head Office in every respect.
4
The goods returned by the customers directly to the Head Office are shown on the debit and credit side of the branch account under debtors system.