Branch Accounting Mystery
This query is : Resolved
03 August 2010
Sir/Madam,
While doing "DEBTOR METHOD" of recording branch accounting transactions I see that we don't transfer any Loss (Normal or abnormal) to Branch A/c.
Why is it so...???
Thanks.
While doing "DEBTOR METHOD" of recording branch accounting transactions I see that we don't transfer any Loss (Normal or abnormal) to Branch A/c.
Why is it so...???
Thanks.
03 August 2010
BECAUSE BALANCE SHEET & PROFIT & LOSS OF CONCERN IS MADE COMBINE AT HO LEVEL.
AT THE TIME OF CONSOLIDATING FIGURES, FIGURES BETWWEN BRANCH AND HO OR OTHER BRANCH IS CROSS BY EACH OTHER.
ILE PURCHASE OF ONE BRANCH IS MATCHED WITH SALE OF ONE BRANCH. I.E IF WE T/F LOSS TO BRACH , THEN IT WILL BE PROFIT OF OTHER WHICH IS AT LAST CROSS.
HENCE WE DO'T T/F ANY LOSS TO BRANCH A/C.
AT THE TIME OF CONSOLIDATING FIGURES, FIGURES BETWWEN BRANCH AND HO OR OTHER BRANCH IS CROSS BY EACH OTHER.
ILE PURCHASE OF ONE BRANCH IS MATCHED WITH SALE OF ONE BRANCH. I.E IF WE T/F LOSS TO BRACH , THEN IT WILL BE PROFIT OF OTHER WHICH IS AT LAST CROSS.
HENCE WE DO'T T/F ANY LOSS TO BRANCH A/C.
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04 August 2010
If I'm not wrong you are saying this:-
>>>> If there's any pilferage of goods (abnormal loss) in branch hands then H.O will not show such loss in branch books [but in its own books] so that while consolidating the figures at the end of period H.O can cross check the loss/difference.
Is it so....???
I'm still confused sir. Please make some more explanations.
>>>> If there's any pilferage of goods (abnormal loss) in branch hands then H.O will not show such loss in branch books [but in its own books] so that while consolidating the figures at the end of period H.O can cross check the loss/difference.
Is it so....???
I'm still confused sir. Please make some more explanations.
04 August 2010
NO,
IF ANY TYPE OF ABNORMAL LOSS OR NORMAL LOSS IS BRANCH HAND, IT WILL BE BOOK IN BRACH ITSELF,
I TOLD THAT IF ANYTHING IS TRANFER BETWEEN BRANCH AND HO , THEN WE ARE NOT TAKING ANY PROFIT OR LOSS ON THESE TRANSACTIONS, WE T/F ON THE SAME VALUE ON WHICH WE RECD FROM OUTSIDE.
I.E ANY LOSS/ PROFIT ARISING AT ANY BRANCH/UNIT WILL BE TAKEN IN THE BOOKS OF BRANCH ITSELF.
IF ANY TYPE OF ABNORMAL LOSS OR NORMAL LOSS IS BRANCH HAND, IT WILL BE BOOK IN BRACH ITSELF,
I TOLD THAT IF ANYTHING IS TRANFER BETWEEN BRANCH AND HO , THEN WE ARE NOT TAKING ANY PROFIT OR LOSS ON THESE TRANSACTIONS, WE T/F ON THE SAME VALUE ON WHICH WE RECD FROM OUTSIDE.
I.E ANY LOSS/ PROFIT ARISING AT ANY BRANCH/UNIT WILL BE TAKEN IN THE BOOKS OF BRANCH ITSELF.
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