Branch Transfer of stock

Save Share

This query is : Resolved

apurva (Querist)

06 September 2007 We have imported material from china for which orders were placed from baroda office. we have registered offie in mumbai & branch office at baroda. On original bill of entry address is of our baroda office. Goods are received at mumbai port & stored at our mumbai factory. From these goods part of the goods are transfered to our baroda office for which we have received F form from baroda office. Purchases are recorded at our baroda office since bill of enrty is drawn on baroda office. Now my question is how I can show my purchase against sales at mumbai office? Can I have to issue F form to our baroda office?

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)

07 September 2007 Dear Madam

Receiving goods against F form and Accounting Purchase of goods are mutually exclusive.

If they go together, neither in Branch books of account nor in HO books of account your purchase figures will be convincing.

When total purchase is booked by Baroda Branch, where come question of Mumbai Branch sending goods to Baroda again come?

To avoid this, for the purpose of CST assessment, please pass the following entry immediately after booking purchase at Baroda Office-
Stock with Mumbai HO Dr
To Purchases

The as and when Mumbai HO supplies the materials to you pass the following entry-

Purchases (against Form F) Dr
To Stock with Mumbai HO

The mirror image entry will have to be passed by Mumbai HO simultaneouly.

Thus both for statutory accounting purpose as well as CST assessment your accounts will show true and fair view.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now