about branch accounts

1. In branch accounts there is one method called stock and debtors method . In this the accounting of branches is done in Head office books . so when the goods are sold at the branch will the transactions be recorded on the same day of sales or at the end of the accounting year. If for example X Ltd. Delhi has a branch in chennai and the chennai branch makes sales whether the sales transaction will be recorded on the same day or on some other day . ?..........

2. If for example X Ltd. Delhi has a branch in chennai and the chennai branch makes cash sales then why journal entry is passed ? if u take subsidary books sales register contains only all credit sales made and all the cash related transaction are shown in the cash book . In cash book Dr. side represents expenses and the credit side represents income . so why journal entry is passed for the cash sales it should be directly recorded in the cash book on the credit side stating as cash sales made by the branch. For cash sales why journal entry is passed and journal record only those transactinn where Opening entries , closing entries , rectification entries , transfer entries , adjustment entries , entries on dishonour of bills, Miscellaneous entries transaction are involved . So why journal entry is passed for the cash sales ..................?

Replies (2)

the transactions are recorded on the same day in all the cases but the head office incorporates branch profit on the last day of the year.

Q1. Material transfered from branch mumbai to Pune branch and Uttarkhand branch ,What is the accounting entry for this transfer? 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details