Branch Accounting entries

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shomenathpyne (Querist)
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04 July 2021 Dear Sir / Madam
We have a branch office in Bangalore and we are paying expenses like rent salary and also creditors payment of Bangalore Branch office, from our Kolkata Head office Bank account. Please guide me about the Accounting entries.
Regards
Shomenath Pyne

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 July 2021 The entries are,
HO entry.
Bangalore branch account dr
To bank account cr

Branch entry in their books.
Salary/expenses/creditors dr
To HO account cr

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shomenathpyne

shomenathpyne (Querist)
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05 July 2021 Sir, Thank you so much for kind valuable reply, only one more query in this regard, that is
1) In the Bangalore branch book a) HO Account ( under current asset ) ?
2) In the HO Book a) Bangalore branch account ( under current liability ) b) Bangalore Creditors ( under current assets or current liabilities ?
Please Guide me.
Thanks and Regards
Shomenath Pyne

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 July 2021 1 Credit balance current liabilities.
2 Dr balance current asset.

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shomenathpyne

shomenathpyne (Querist)
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05 July 2021 Thank you so much sir

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