Accounting treatment of stock transfer to branch

A/c entries 31139 views 3 replies

One of My client being an Individual engaged in Manufacturing of SS Pipes/Tubes
having plant/manufacturing facilities in Ahmedabad in Gujarat as Head Office. also the Product is excisable.Moreover it is also having a Branch office in Chennai (Tamil Nadu). Sales is made both from Ahmedabad & Chennai.

So far Sales at Branch is concerned the Stock is transfered to Branch from H.O. against Form F. Out of Stock received from H.O. the Branch sells Goods from Chennai by way of issuing Sales Invoices to Customers from chennai itself.

How to account for the said Activities both in H.O. Books & Branch Books after keeping in mind the accounting concept so far HO/Branch is concerned , excise Law and State local taxes with a simple illustration with complete accounting Entries.

 

 

 

Replies (3)

sanjay JI

As far as my view concern

In the Books of head office -

On transferring the goods

Branch                      Dr

To Stock transfer to Branch ( sale )

on receiving the payment

Bank                          Dr

To Branch

In the books of Branch

on receiving the material from HO

Purchase                   Dr

To HO

on sale from  Branch

Customer                   dr

to sale

on recieving pmt from customer by Branch

HO                             Dr

To customer

 

Pl comment on the above

 

 

 

 

 

Transfer should be made without any margin and transfer is being made in cost value. So NO GST.

No GST for which transfer? Can you elaborate?


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