Learning Materials For Accounting, Management , Finance And Economics.

Thursday, October 6, 2011

Accounting Records Of Independent Branch

1. For goods supplied by head office to branch:

Branch book:

Goods supplied by head office A/C.........Dr.
To Head office A/C
(Being receipt of goods)

Head office book:

Branch A/C..............Dr.
To goods supplied to branch A/C
(Being goods sent to branch)


2. For cash remitted by head office to branch:

Branch book:

Cash A/C..............Dr.
To head office A/C
( Being cash received)

Head office book:

Branch A/C .................Dr.
To cash A/C
(Being cash sent to branch)

3. For goods returned by branch:

Branch book:

Head office A/C............Dr.
To goods supplied to head office A/C
(Being goods return to head office)

Head office book:

Goods supplied from branch A/C............Dr.
To Branch A/C
(Being goods returned from branch)

4. For cash remitted by branch to head office:

Branch book:

Head office A/C.............Dr.
To cash
(Being cash sent to head office)

Head office book:
Cash A/C.................Dr.
To Branch A/C
(Being cash received from branch)

5. For assets purchased by branch on behalf of head office:

Branch book:

Head office A/C ..................Dr.
To cash A/C
(Being purchase of assets)

Head office book:

Branch assets A/C.............Dr.
To branch A/C
(Being assets purchased by branch)

6. For depreciation charged:

Branch book:

Depreciation A/C ...............Dr.
To Head office A/C
(Being depreciation on branch fixed assets)

Head Office book:

Branch A/C...................Dr.
To branch assets A/C
(Being depreciation of branch fixed assets)

7. For expenses incurred by head office

Branch book

Expenses A/C..............Dr.
To head office A/C
(Being expenses incurred by head office)

Head office book:

Branch A/C......................Dr.
To profit and loss A/C
(Being expenses incurred for branch)