yogesh (accountant) (24 Points)
22 September 2011I TRANSFERRED A STOCK OF RS. 100.00 FROM HEAD OFFICE DELHI TO BRAHCE( MFG. UNIT) OFFICE AT HARYANA AGST FORM F. AT BRANCH GOODS ARE PROCESSED AND ADDED VALUE OF RS. 80.00 AND TRNF BACK TO DELHI HEAD OFFICE FOR RS. 180.00 AGST FORM F FROM HARYANA . AND HEAD OFFICE SOLD THIS TO PARTY AT RS. 200.00 . I WANT TO KNOW HOW TO MAKE ACCOUNTING ENTRIES IN BOTH BOOKS HEAD OFFICE AND BRANCH OFFICE. TO SETTEL ACCOUNT AND TO CONSOLIDATE THE BOOKS AT THE END OF YEAR.
Ateeq
(CA - Final)
(213 Points)
Replied 22 September 2011
1) In the books of Head Office
For the transfer of stock to branch: -
Branch A/c Dr.
To stock A/c.
For the receipt of Stock: -
Stock A/c Dr.
To Branch A/c.
2) In Branch books of accounts: -
For the receipt of stock from head office
Stock A/c Dr.
To Head Office A/c
For the transfer of stock to head office
Head Office A/c Dr.
TO Stock A/c.
3) Sales entry will be as usual i.e.,
Cash/Bank/ Mr. x A/c Dr.
To Sales A/c.
At the end of the year settle the balances of the head office and branch office by deciding the liability i.e., if head is payable to Branch then remit or transfer such amount to the branch or vice versa.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 23 September 2011
agree with above ,very nicely explianed
C.A. Sandeep Wawhal
(Chartered Accountant PGDFM BCom.)
(1823 Points)
Replied 24 September 2011
Agree with above.............
C.A. Sandeep Wawhal
(Chartered Accountant PGDFM BCom.)
(1823 Points)
Replied 24 September 2011
Agree with above.............
B.N.Dharmendra
(Senior Manager Indirect Taxation)
(136 Points)
Replied 26 September 2011
Dear Friends, I have a doubt can u clarify on this regard.
Since the transaction between the HO & Branch is done through Form-F, Its not a Sale, its movement of goods between branches and to avoid the Tax. Since in the first case of Transfer from HO to Branch its for captive consumption because the goods is processed at Branch. In second case the processed goods in different form (may be different Product) is stock transfered to HO with Form-F. You must have a Stock Register at HO and Branch with Form-F details to substantiate the goods movement. Only at HO when you raise the Invoice to X party you treat it as sale and Account for it. What is that entries of Dr. Branch and Cr. STock etc.
Ateeq
(CA - Final)
(213 Points)
Replied 26 September 2011
In such case: -
If the sale is made from branch itself, then it is advised to record sales at branch only.
Otherwise the following entries can be passed: -
1. Stock A/c Dr.
To Branch A/c
2. Party A/c Dr.
To Sales A/c.
parag_0302
(Asstt. Commercial Officer)
(124 Points)
Replied 26 September 2011
1) In the books of Head Office
For the transfer of stock to branch: -
Branch A/c Dr.
To stock A/c.
For the receipt of Stock: -
Stock A/c Dr.
To Branch A/c.
2) In Branch books of accounts: -
For the receipt of stock from head office
Stock A/c Dr.
To Head Office A/c
For the transfer of stock to head office
Head Office A/c Dr.
TO Stock A/c.
3) Sales entry will be as usual i.e.,
Cash/Bank/ Mr. x A/c Dr.
To Sales A/c
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