ACCOUNTANT STUDENTS’ SOCIETY

Dominion, Volume 15, Issue 30, 29 October 1921, Page 2

ACCOUNTANT STUDENTS’ SOCIETY

The final meeting of the Accountant Students' Society for the year was held op Fridlay night in Accountants’ Chambers, when Mr. Ernest W. Hunt presided over a ihrge attendance of members. The chairman expressed the hope that next session, which would be the twentieth year of the society’s operations, would be as successful as the present year, which had been one of the best in the history of the society. He also took the opportunity of wishing the members who were sitting for their examinations at the beginning of November every success.

The business of the evening was a lecture bv Mr. AV.. AAL AVaddilove, F.I.A.N.Z. on tho subject of departmental and branch accounts Tho lecturer stated that the departmental store had its origin in Chicago, and had the effect of counter-acting the influence of tho owner manager who was still a powerful economic factor to-day Ho also briefly outlined the growth and history of some of the large departmental stores in England. Mr. AVaddilove referred to the importance of correct costing of oversea shipments and said l that in each department the rates of gross profit should bo fixed, subject to adjustments for special sales and the writing down of seasonal goods at the end of each season. The lecturer stated that cash registers were preferable for each department to the cash railway system in vogue in the Dominion. He pointed out that there was a. difference in opinion as to the relative value of sectioiialising the profit and loss account of the departments, but if this was done the apportionment of expense to each department should be on an equitable basis and not in "elation to turnover. Mr. AVaddilove also stated that the Administrative expenses of a business were very' difficult to apportion and that the tabular ledgers for apportioning expenses were not altogether satisfactory The lecturer stated that branch, accounts were in reality an extension of departmental accounts, and he proceeded to outline tho system of accounting in operation in some of the large firms with verv extensive branches -in England. more particularly in the case of Liptons, Boots Cash Chemist, Limited l , and Salmon and Gluckstein, whose branches were established on the chain system. He referred at length to the principle of accounts in operation as between tho branch and head office, and emphasised tho necessity where the branch was trading in a foreign country’ of having tho transactions as between head office and branch in tho books of account Iwth in sterling and the currency of the country. After stressing tho necessity' for periodic reconciliation of the branch and head office accounts he outlined the entries/and adjustments necessary both in head office and the branch books at the end of the year. After answering numerous questions' the lecturer was accorded a hearty vote of thanks by' acclamation for his lecture.