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 ..................?
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