Can you please clarify whether we can use control accounts for Expenses paid by Head Office on behalf of branches instead of directly debiting the branch Account.
Example :
Salaries paid by HO on behalf of Branch
in Head Office :
1) Salaries Payable Control A/c Dr
Bank A/c Cr
2) Branch A/c Dr
Salaries Payable Control A/c Cr
in Branch Office
1) Salaries payable A/c Dr
Head Office A/c
Kindly clarify.
Thanks,
CAclubindia
