Branch accounting consolidation

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Mukesh Kumar Tomar (Querist)

10 October 2009 my query is " when a company operates 5 branches apart from head office and prepares a consolidated trial balance in excel by providing a set of debit and credit columns to each site / branch & HO and one set for consolidated TB. while doing so we show inter branch dr /cr balance in consolidated TB. what will be the accounting treatment in Balance Sheet for the same (will the balance will be shown in Balance sheet or not)"

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)

10 October 2009
Hi Mukesh,

Year end balance of Branch A/C in Head office books and Head office A/C balance in Branch Books must be equal & get neutrilised i.e. will not reflected in Consolidated accounts but the balance of Branch A/C is represented by Items of Assets and Liabilities and P.L.A/C. for details reading you may refer the link below
https://books.google.co.in/books?id=Kbwqvv24fg0C&pg=PT1071&lpg=PT1071&dq=accounting+of+Inter+Branch+account+balance+in+Final+accounts&source=bl&ots=2Z_tNbQAf1&sig=bG-Ve5YHV9MVU4OLRd_a7QVinbg&hl=en&ei=Dy7QSpCOD46PkQXWvMiEBA&sa=X&oi=book_result&ct=result&resnum=1&ved=0CA8Q6AEwAA#v=onepage&q=accounting%20of%20Inter%20Branch%20account%20balance%20in%20Final%20accounts&f=false

Mukesh Kumar Tomar

Mukesh Kumar Tomar (Querist)

10 October 2009 thanks sanjay.

your link is very nice.

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