Branch Accounting

Dear Sir,

i wnt know that if any branch exp paid by headoffice, & Headoffice done both a/cing in same book mean head office, i will show the exp of branch in branch a/c & paid by head office then what entry will be posted.

Please reply as my convenience

Thanks

Replies (2)

In the books of  Head Office entry will be:

                  Branch Account              DR.      Rs- 1000/-

                              To Cash/ Bank                            Rs-  1000/-

 

 

In the books of Branch Entry will be:-

                          Expenses Account      DR.       Rs.   1000/-

                                     To  Head Office Accounts            Rs-       1000/-

 

yas this enty is absolutely correct

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