Branch a/c.

A/c entries 1791 views 3 replies

hi ALL,

i've a doubt in branch a/c. can anyone help. plz.

Exp. paid by UK branch on behalf of Head Office in India. What is the journal entry in HO & branch.  How to close each books?

tnx.

RK

Replies (3)
Hi, The following entry will be passed by Branch UK HO a/c -- - dr To Bank a/c (being expenses paid on behalf of HO) In HO Books Expenses a/c - - -dr To Branch a/c (being HO expenses paid by branch)
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it all depends on if branch is maintaining separate accounting books and for what purpose amount has been paid, if the expenses paid on behalf of head office than pass this entry : - Dr. Expense A/c Cr. bank / cash a/c and if all accounting is maintained at head office then then claim this expnse from head office via a Debit note and pass this entry Dr. Expense A/c Cr. Head office (Nadim Khan)


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