14 January 2012
How is the stock transfer considered while consolidating branch accounts and HO accounts Stock transfer in the month end is goods in transit for the branch .
How is is treated in the consolidated balancesheet
15 January 2012
Branch transfer is just an movement from one office to another office of the same company & is not a actual sale ,for Consolidated B sheet ,the accounting figures should be equal means Ho send 100 Rs material to Branch & branch Receives 100 Rs material from Ho so for CB effect will be nil ,for company total purhcase figures will be total purchases done at HO (if only HO do purhcases) & actual sale will be sales done by the branch (assuming all material purhcase by HO transfeered to HO or otherwise in this way ).Stock in transit in branch transaction is only part of total stock as ownership is already with the company for BSheet purpose even if shown seprately as in transit.
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