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Departmental Accounts is also know as Cost Centers usually followed by the companies which have large number of SBUs. Purpose of Cost Center is to segregate of expense and revenue of SBUs. and provide insight control over budgeting.
Departmental Accounting involves recording of business transactions and preparing financial statements of each branch or segment independently. The results of all the branches are then combined by the head office in it's books to prepare the company accounts. For example different branches of bank prepare their independent accounts and head office prepares consolidated account of the bank as whole.
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