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.
Message likes :
1 times
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Exiting partner in partnership firm in gst portal
- Regarding ITR filing with more value than showing in AIS/TIS
- TDS _Long term Capital Gain ref.sec 214 Table 2
- TAX AUDIT QUESTION
- ASMT-10 received from A O
- Banking Related Issue
- ITR-Capital Gain
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
