Branch Accounts Entries

A Tust has 3 School A,B & C.
-All of them maintain separate books of Accounts.
-Expenses of Electricity Bill arise A-1600, B-1000 &C-1400. All of them made provisions in their respective books of Accounts.
- But cheque of total rs.4000 issue from School A.
what will be the journal entries and under which group in Tally ERP 9.
Replies (7)
Quick Summary
This discussion clarifies how to handle shared electricity bill payments across three school branches (A, B, and C) within a trust, using Tally ERP 9. It details the necessary journal entries in each school's books, particularly when School A pays the total bill on behalf of B and C. The advice includes setting up 'School B' and 'School C' ledgers under 'Branch/Division' in School A's accounts and provides the correct debit and credit entries for the electricity expense and bank payments.

In the Books of A entry will be
Electricity Exp A/c Dr
To Bank. A/C Cr
(Being electricity Exp paid)


In the Books of B entry will be
Electricity Exp A/C Dr
To A A/c Cr
(Being electricity Exp paid by A school )
when you pay back to A school entry will be
A. A/C. Dr
To Bank. A/c. Cr
( paid to A school Account paid earlier )


In the Books of C entry will be
Electricity Exp. A/c Dr
To A. A/c Cr
( Being electricity Exp paid by A school )
when pay back to. A school
A. A/c Dr
To Bank. A/c. Cr
(Payment made to school A , earlier paid )

In the Books of. B and C , A account will be under current liabilities balance sheet .

Does school A pay the bills directly to electricity board on behalf of b and c?

All three school are governing same Trust , so I think they can pay .

The entries are of good help because I forgot one can put branches in credit balances from your previous entries.

But Payment done by A, needs specify the amount of B & C.How to do and under which group in the books of A
You can see in Bank ledger of A school , all entries , on credit side.entry of Rs 4000/- paid and on debit side , amount received from B Rs 1000/- and amount received from C 1400/- .

you have  creat  ledgers  of   School  B  and  School  C   in  School  A '  books  of accounts   , under  Branch / division  in  Tally  ERP 9 . 

In my 1st  reply  , just  make correction  in 1 st  entry  after creation  of above ledger . 

Electricity   Exp        A/c      Dr        1600/- 

B School                  A/c      Dr         1000/- 

C  School                 A/c      Dr         1400/- 

To   Bank                 A/c                  Cr                  4000/- 

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