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Advanced Income Tax Act 2025
How to treat the following in branch accounting?
1. Prepaid rent
2. Outstanding salary
3.Prepaid insurance
Normal accounting treament , no separte treatment for these items in Branch accounts
Prepaid need to show as asset and charged off accorddingly in the future & outstanding expenses need to be show as liability and pay accordingly
Thank you sir, but in debtors method where the H.O bears all the expenses of the branch the above mentioned shall be entered in the debit or credit side of branch account in the books of H.O?
In the Debtors system,since the expenses are centrally paid by HO. You can debit or credit the expenses and transfer to HO books
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